Results 15,701-15,720 of 26,402 for speaker:David Cullinane

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: Some €29 billion went in to fill a hole. Who would have been the Accounting Officer signing a cheque for €29 billion to go into Anglo Irish Bank? I imagine it would have been the Secretary General.

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: I understand that. Some €29 billion of taxpayers' money was transferred from the State into Anglo Irish Bank. That is a fact. Somebody would have had to sign the cheque for that money and somebody is accountable for that spend. I imagine the Secretary General of the Department of Finance is the Accounting Officer for the transfer of that money.

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: I understand the policy choice was made but once a policy choice is made and money is then transferred from the public purse, from a Department to an organisation, the Accounting Officer is responsible for that money. Some €29 billion was put into Anglo Irish Bank. I was looking for a breakdown of the €66.8 billion and exactly where that money went. Similar to the NAMA money,...

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: The witnesses are looking at me as if it is a silly question. It is not a silly question. I want the witnesses to explain precisely what €29 billion, a huge amount of taxpayers' money that was put into a private organisation, was used for. I do not want to hear the general term that it was used to recapitalise the bank. The money that was given was used for something. What was it...

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: So it its purpose was to give the bank additional capital. What did the bank do with that money?

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: What exactly are its liabilities?

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: Bondholders, debt, exactly, so the €29 billion was essentially used to pay off debt, which is the point that I am making. This is a bad bank. It is a developer's bank, essentially, and it is extraordinary that we can make a statement that if that investment was not made, the entirety of the banking system could have collapsed. That might hold some logic if one was talking about...

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: I do not know precisely how that €66 billion was spent other than being told it was used by the banks to recapitalise those banks. It would be useful if we could get a breakdown of exactly how that money was spent. For example, which banks got what from the first €66 billion? What was the money used for when the banks were recapitalised? What did they do with the money? Are...

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: The biggest amount went to Anglo Irish Bank. I come then to the breakdown I asked for earlier, which relates to NAMA loans that were acquired and the €31.8 billion. We can see that Anglo Irish Bank got-----

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: Some €13.4 billion but the losses were €21 billion. The crystalised losses were €21 billion. Is that right?

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: On those transfers, and the overall crystalised losses are €42.6 billion. Is that right?

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: So the actual crystalised loss for Anglo Irish Bank was 50% of the overall loss?

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: Roughly 50%. Half of the €66 billion went into Anglo Irish Bank. Then NAMA was set up and was given €31.8 billion to take the bad loans off the banks. The banks then crystalised losses. The losses are €42.6 billion. In the case of Anglo Irish Bank, it was €21 billion, a majority, and we can maybe question the wisdom of that. What happened when the banks...

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: At the time, they would have been booked as a loss when the transaction happened.

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: Whether it was in a moment of time or over a period, how did the banks cope with those losses? What did they have to do to manage those losses?

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: Back to the recapitalisation, which is a consequence of the fact that, for this particular bank, we took its bad loans and left it with a loss of €21 billion which happens to be 50% of the total amount of the crystalised losses. It then took approximately €29 billion of taxpayers' money which was put into it. At the end of the process, all we got was a broken bank which was...

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: I have watched enough of "Yes, Minister" to know that when Accounting Officers come in, it is a matter of policy and when the Minister comes in, he will say it is an operational matter for the Department. On something as serious as this, when we are talking about huge losses of this magnitude, we would have known this. None of this is new. It is flabbergasting to see the figures involved.

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: The total losses so far to the State with regard to the overall investment in the banks, bailing out the banks, or whatever terminology one wants to use is €39 billion to date according to the Comptroller and Auditor General.

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: The net cost to the State. That is going to increase because, year on year, we will have to pay back the interest. That is a moveable figure so it will go up again next year. In five or ten years the figure could be €45 billion.

Public Accounts Committee: 2016 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Chapter 3 - Cost of Bank Stabilisation Measures as at the end of 2016
Irish Bank Resolution Corporation Liquidation (14 Dec 2017)

David Cullinane: It is not the final figure.