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Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: How did you advise the Minister? How did you earn your crust on the day?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Was he irritated by it?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: So at that point, when Professor Honohan had come out on the 18th, were ye already, effectively in substance, in discussions on applying for a bailout with the EU ... in substance-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Who in your judgment was actually carrying out those briefings?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: The ECB?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: And do you think that in substance, was the Government bounced into a bailout by the ECB and European partners or was it just a matter of timing that Ireland was going into a bailout anyway?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Can I just go on to an area. When Minister Lenihan ... you had been with Minister Lenihan through all his Ministries and you provide a unique insight. He came in as Minister for Finance on 7 May 2008. He brought in a mini-budget of reform just over two months later on 8 July for €440 million of cuts. Was he surprised with the state of the public finances when he became Minister for...

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: How did you find your interactions with say, with fellow Ministers, Cabinet Ministers and the general ... his role as Minister for Finance which was ... which became a role of containment and contraction, how did ye find within the Government itself, the buy-in from other Government Departments and Ministers?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Do you feel it had lost its teeth over the previous number of years?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: And how did he find the quality ... well, what's the word, the expertise within his own Department when he joined it in terms of dealing with what had been happening over the last year in terms of ... the last year or two in terms of the banking crisis, and generally what ... how did he find the level of advice within the Department? He appears to have been ... had a propensity to ring...

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: And I notice that David McWilliams was in on that ... was ... would have been another one he would have conferred with. And just, I suppose-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Yes, and did ... did he ... when he wrote his book subsequently, how did the Minister Lenihan react to making public ... David McWilliams making public his deliberations with the Minister?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: No, it was actually, just one tiny ... just finally-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: -----and I know it's probably a very hard question but, with the benefit ... in your deliberations with Minister Lenihan, was there any area that he would have liked to have done differently during his period of time as Minister for Finance, or there were areas that he-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Ms Herbert, prior to the guarantee, the late Brian Lenihan and the Department of Finance, was there discussions or concerns around the solvency of the banks?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: And was there ... what was the ... he was sceptical and the Department was sceptical around the advice being provided by the Financial Regulator. What was the basis of that scepticism?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Thanks, Chairman. Welcome, Mr. McDonagh. Mr. McDonagh, in your opinion, would the nationalisation of Anglo Irish Bank on the night of the guarantee have saved the taxpayer money and, if so, how much?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Jul 2015)

Kieran O'Donnell: Anglo?

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