Results 16,861-16,880 of 27,945 for speaker:Michael McGrath

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: And had you debts maturing in the weeks ... the days and weeks-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Okay. And while PTSB was covered by the guarantee and you weren't in any way involved in the final discussions, as you know, AIB and Bank of Ireland went to Government Buildings on the night in question. So, did the bank have any input in the days leading up to it about the possibility of a guarantee and whether it would wish to be included? It might have been at a more senior level to you...

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: And you personally wouldn't have been aware in the 24-48 hours leading up to the decision-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: -----that something was about to be done.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: No.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: What was your reaction?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Did you feel it was the right decision----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: -----then?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: And what was the immediate impact of it on your operations and on the funding and liquidity side of the bank?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: And, on the broadly blanket nature of the guarantee, did you believe that it was too broad? Had you any views at the time and what is your current view of the appropriateness of the bank guarantee?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Okay. The State ultimately ended up injecting €4 billion into Irish Life and Permanent: €1.3 billion was recouped with the sale of Irish Life and a further €500 million or so in the recent restructuring. The net cost is still north of €2 billion, as I understand it.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Given that Permanent TSB didn't go into the whole area of speculative property lending, land banks and development finance, how did it end up costing €4 billion? Was it the collapse in property prices? Can you explain, from your point of view, and I know you were gone in early 2009-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Property prices fell dramatically in '09 and '10 but, from where you were sitting, on your departure did you foresee that the cost could be so great of rescuing Irish Life and Permanent?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: But where could the losses have come from? Can you just rationalise it? You know-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: So it would have been driven by loan impairments, additional provisioning-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: -----stress testing-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael McGrath: Sure. And you said that 85% of the ... was it the group assets-----