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

Kieran O'Donnell: And when, in your view, do you believe Anglo was insolvent?

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

Kieran O'Donnell: Why March 2008?

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

Kieran O'Donnell: Paddy's Day, yes.

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

Kieran O'Donnell: That's true, yes.

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

Kieran O'Donnell: And, we'll say, on 17 June 2008, you were in correspondence, you looked for, effectively, I suppose, an indemnity from the Minister for Finance in terms of extending funding to, we'll say, deposits. Deposits to Irish Life and Permanent went up fivefold, from €50 million to €250 million. EBS went up two-and-a-half-fold, from €40 million to €100 million. Was that...

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

Kieran O'Donnell: What was the purpose of the letter?

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

Kieran O'Donnell: And is that ... was that under the legislation-----

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

Kieran O'Donnell: -----or was that an executive decision?

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

Kieran O'Donnell: And was that the first occasion that you sought such a direction?

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

Kieran O'Donnell: Putting money on deposit-----

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

Kieran O'Donnell: -----with the banks.

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

Kieran O'Donnell: And when you got ... you made that decision back in August 2007 and this was the first occasion where there was a roll-over of deposits. Did it set off alarm bells that the Minister for Finance was looking for such a large increase in the likes of Irish Life and Permanent, where they went from €50 million to €250 million, and EBS from €40 million to €100 million?...

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

Kieran O'Donnell: He took it that seriously?

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

Kieran O'Donnell: And did you have concerns at the time about the solvency of the entire banking system at that stage in Ireland?

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

Kieran O'Donnell: Would you have had discussions with the Department of Finance at the time, back in June 2008, that there was a need for, we'll say, analysis to be done, due diligence to be done, a plan to be put in place to deal with the banks, a strategic plan?

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

Kieran O'Donnell: No, but back, going back. I know that and we've heard that.

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

Kieran O'Donnell: But going back to June, your CEO, Mr. Somers, went to the, I suppose, unprecedented position of effectively getting ... looking for senior counsel opinion, effectively against the direction of the Minister for Finance at the time, Mr. Brian-----

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

Kieran O'Donnell: 2007, who was then the Minister ... was Minister-----

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

Kieran O'Donnell: Cowen. Which was I would have thought relatively unprecedented. So the question is at that point, when you made such a dramatic decision, did you see fit as an organisation to say to the Minister for Finance, "There's a problem here. What alternative measures are you putting in place to deal with the issues in the banking system?" You were the experts in terms of rasing funding. The fact...

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

Kieran O'Donnell: That's the question.

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