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Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: But there's-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: €20 or €30 million-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: And so by March, in March 2013 they were still, they were coming back to do another set of stress tests, isn't that correct?

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: Okay, so given in that year they did take a stake in Bank of Ireland, at 3%, would you now-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: I was actually going to ask whether or not in future, one might write the contract differently?

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: If I could go ... if I might go back please to the RTE radio interview. Just to check, on Tuesday, 16 November, Wolfgang Schäuble it is understood and reported that he has asked Mr. Lenihan to announce his application for aid after the meeting that had taken place that day and that Mr. Lenihan had said no, that he didn't want to be put ... he said "I wouldn't participate on that basis;...

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: So Mr. Schäuble had asked him to announce, you asked him to announce, and he said "No"?

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: Okay, so when ... when you went on the radio - I have the transcript here: Rachael English: And you can confirm that they will be giving us a loan? Patrick Honohan (Governor of the Central Bank): Well if it's agreed. If it's agreed of course yes. Rachael English: And when you say if it's agreed, I mean why else would they be here? [And then you go on and say there's an expectation and...

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: But, do you accept finally-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Susan O'Keeffe: Finally, Mr. Honohan, do you accept though that really on that morning, you did pretty much copper-fasten the fact that there was going to be-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: Thank you, Chair. Mr. McCarthy, specifically, did the Department make attempts to quantify the effects of a soft landing? That is in terms of loss of revenue or increased expenditure, was that a specific task that was carried out? I know you've referred to soft landing before that people have asked you.

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: Was there any argument about those calculations or were they largely-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: And that was passed obviously on to Government, to anyone who needed it?

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: Not surprisingly, I'd like if I might, to come back to this document again in Vol. 3, the one that has the changes. Because you've given in evidence here this morning and you've said to us that it was good to provoke thought, I think was the way that you put it, and you talked about changes being purely of a factual nature. I would draw attention then to page 12 of that document, that's...

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: That was marked "delete", that was marked "delete".

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: Oh it was, yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: And again on page 20 of the same document, there's one sentence, "Implement an insolvency procedure, specifically adapted to banks." That was a summary of recommendations on financial stability. There's a line put through that and indeed it does not appear on page 38 where the summary of recommendations on financial stability appear. Now, I want to draw your attention if I may to page 6 of...

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: Yes. Documents held up as being the ones that were international advice, had in fact quite a significant input made by our own Department of Finance and other institutions in Ireland.

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: That doesn't make it right though.

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Susan O'Keeffe: But the ones I've drawn your attention to are not-----

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