Results 12,721-12,740 of 19,445 for speaker:Brian Cowen

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: This led to the anomaly being pointed out to me so it can be rectified as quickly as possible.

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: I move amendmentNo. 16: In page 17, line 44, after "union," to insert the following: "or 40 per cent of the total gross loan book balance outstanding at that time in respect of all loans made by the credit union where written approval is received from the Bank,". Section 17 of the Bill as published amends section 35(2) of the Credit Union Act 1997 so as to allow a practical interpretation of...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: I agree there is always a need to strike an appropriate balance between allowing the credit unions to expand the range of services as they would wish while at the same time ensuring members' savings are not put at undue risk — that is the balance we are attempting to strike. As progress was not being made on long-running issues, since I became Minister for Finance I have instigated a...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: I move amendmentNo. 17: In page 18, line 7, to delete "union, or" and substitute the following: "union, or 15 per cent of the total gross loan book balance outstanding at that time in respect of all loans made by the credit union where written approval is received from the Bank, or".

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: As I indicated, the guidance note was issued in October 2006 because the regulator is mindful of all these issues. The note is subject to regular review and consultation with the credit unions. Each individual credit union is answerable to its membership through its board. Annual meetings are held, financial reports are examined and approved and properly run credit unions confirm that they...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: It may not have been a problem but it has become an issue. A common approach must be adopted to ensure all parties are satisfied. This is an ever-changing financial environment. The reason the guidance was issued by the registrar in the first instance was that credit unions need to find an outlet for loans for the savings lodged with them, while ensuring the investments entered into are...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: I move amendmentNo. 18: In page 18, after line 15, to insert the following new section: 18.—(1) The Insurance Act 1936 is amended by repealing sections 9 and 10. (2) The European Communities (Non-Life Insurance) Regulations 1976 (S.I. 115 of 1976) are consequentially amended by revoking paragraph (5) of Regulation 4. (3) The European Communities (Life Assurance) Regulations 1984 (S.I. 57 of...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: Yes. We are repealing sections 9 and 10 of the 1936 Act, the rest of which remains intact.

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: I move amendmentNo. 19: In page 18, after line 15, to insert the following new section: 19.—The Central Bank Act 1997 is amended— (a) in section 28, by adding the following definitions: "'credit' includes any deferred payment, cash loan or other form of financial accommodation, such as— (a) consumer credit, hire purchase or mortgage credit, (b) factoring, with or without recourse, (c)...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: Yes.

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: I am concerned about people giving publicity to suggesting there was some problem for the Irish regulatory regime. There was not. Yesterday, I answered this question by way of a parliamentary question put by Deputy Costello and my response explained the factual situation on that matter. The fact is that structured investment vehicles, SIVs, and conduits are not regulated. However, as a...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: We have moved far from the section at this stage but I have given a full reply to a parliamentary question on Ormond Quay which sets out the position and there is no point in adding to or retracting from it. Ormond Quay was not a complex product. They borrowed short and invested long and the short-term borrowing was straight up, as it were.

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: No. The position is——

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: It is important to be clear that the Ormond Quay vehicle was an off balance sheet investment vehicle. It was a conduit of Sachsen LB, which is a German savings bank. That German savings bank, Sachsen LB, provided a guaranteed line of credit to Ormond Quay and some other conduits it had established in Dublin. Ormond Quay called on that line of credit as the prevailing market conditions were...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: No one takes pleasure from any financial institution getting into difficulty. Lessons will be learned from the turbulence by finding out what caused the problem and what practices were allowed. We have already seen US Treasury Secretary Paulson commenting on what he felt were lax regulatory standards, the need to review the regime in the United States and how it operates in regional markets...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: We have gone a long way from the amendment now.

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: I do not underestimate the Deputy's versatility.

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: That will keep him quiet.

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: We are not necessarily left holding the baby. These are commercial issues and, in many cases, the moral hazard must be considered in that context. The assumption that the State automatically comes in to cover everyone else's mistakes is not necessarily the case, although I take the point that the overall impact on market stability will always have to be considered depending on the scale and...

Markets in Financial Instruments and Miscellaneous Provisions Bill 2007: Committee Stage (17 Oct 2007)

Brian Cowen: He is a former Secretary General of the Department of Health and Children and the Department of Finance. I have listened to others who hold similar views on this issue. In the context of having a discussion on any of these issues, we need to preface our remarks not simply by empty flag-waving, but by stating that we have a good financial system that is well capitalised, liquid and...