Results 10,761-10,780 of 14,090 for speaker:Marc MacSharry
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: The practice has improved or there's been a law to improve it?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: Do you feel that the process and controls around such things are sufficient now?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: They're better. Okay. When NAMA acquired loan portfolios from AIB, NAMA imposed a haircut of 40% of the nominal loan ... on the values of the assets at the particular time. Were you satisfied with the valuation methodology used by NAMA in assessing the value of AIB land and development loan book and the potential impact on subsequent provisioning?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: So it's the KPMG annual report and financial statement 2011. Page 17.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: No, I appreciate that you'd no involvement but I am asking were you satisfied, as a firm of auditors - as a firm that had a professional opinion on these issues - were you satisfied that the valuation methodology in assessing was right, was good, what did you feel about it?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: So, I mean, the practice was just to take it as read or not or did you have a view at the time, "Look, that looks a bit high ... it looks a bit low"?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: And can you provide an explanation in your view as to why the haircut was so high?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: Okay, I just take a ... on then to page 29 of core documents, AIB report to the audit committee, 23 July 2008. In the KPMG report to the audit committee of 23 July 2008, it outlines: "We expect the increasing arrears across the bank's books and sectors will continue to feature in the second half of 2008 and into 2009 as the worsening economic conditions in Ireland and the UK take hold."...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: I suppose I should've asked earlier. Apart from auditing, do KPMG, at the time, provide other services to AIB?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: So, would you have a view on the appropriateness of paying a dividend, given the situation at the time?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: And what were the reasons?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: Okay. In July 2006, the bank's exposures to the broad property and building construction sector amounted to 260% of all funds when the Central Bank's limit was 250%. The bank continued to breach these limits and such lending reached a level as high as 390% at September 2008. Did KPMG ever analyse the risk level associated with the percentage share of the property-related lending?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: It was being discussed, but it was increasing.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: The definitions of Basel were going to be different and, therefore, the exposures wouldn't be as high. Is that what you mean?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: Okay. In terms of ... just on page 47 of ... is it page 47 of the evidence book? It shows an individual worth €3.2 billion ... total bank borrowing of circa €1.8 billion comprising residential and commercial developments and investment properties. It had a peak underwrite of facilities of €790 million with AIB in September 2007. So the top 30 exposures of AIB...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: Would you have a view on the top 30 exposures accounting for 29% of the total portfolio?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: But you wouldn't have a view that----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: Okay. Just one final question for Mr. O'Rourke. At any time in your period as managing partner, would any financial institution have ever complained to you about the intrusive nature of auditing?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: No, no, but any financial institution?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Marc MacSharry: All right, I'm not going to mention the names.