Results 17,081-17,100 of 27,945 for speaker:Michael McGrath

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Jul 2015)

Michael McGrath: And would that be all board committees, including the credit committee?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Jul 2015)

Michael McGrath: And what was the threshold above which a transaction would come to the board? From memory, if you recall?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Jul 2015)

Michael McGrath: Okay. And would a transaction normally come to the board for the first time for final sign-off or could there be a series of discussions?

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Jul 2015)

Michael McGrath: Okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Jul 2015)

Michael McGrath: Thank you.

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Thank you very much, Chair. Ms Tinney, good afternoon. Can I, first of all, take you to Vol. 2, page 105, please, and it relates to the board deciding to increase the counterparty credit limits for the other Irish banks to €200 million? So this was in November of 2008.

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Sure, yes. Page 105-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: -----of Vol. 2.

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Yes. And there's some more information on the following pages, 107-111. So essentially this was a decision by the board to increase the lending lines to the other covered banks and it's in the aftermath of the Government decision on the bank guarantee. And it seems to be to facilitate lending to each other, as such, you could buy bonds back and forth. So to what extent in your opinion did...

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Okay. Can I take you to, just on page 2 of your statement so on the system - it's 004, if that could be opened? It's under the heading of the "Adequacy of board oversight over internal controls, managed and monitored". And you refer to an instance where an employee in the treasury department of EBS had illicitly engaged in proprietary trading, strictly against the rules of the society....

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Okay, and can you just explain what happened? What do you mean by "illicitly engaged in proprietary trading"? Can you just tell us what that is?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: And did it go to board level then?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Okay. And the loss to the society was €1.2 million?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: And what were the repercussions from that episode? What happened?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Nothing?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: €1.2 million lost by-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: -----illicit trading against the rules of the society and nothing happened?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: And was the individual sanctioned?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: And how was that acceptable to the board?

Committee of Inquiry into the Banking Crisis: Nexus Phase (29 Jul 2015)

Michael McGrath: Okay. And just to clarify the nature of what happened, it was trading, essentially, the deposit book or part of the deposit book was traded on, on some financial instruments?