Results 17,861-17,880 of 27,945 for speaker:Michael McGrath
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: In September 2010 the Government made a decision on the strategic future of Anglo to separate it between a funding bank to hold deposits and an asset recovery bank. What other options were being considered at that time, because we know the management of the bank, for example, were putting forward an alternative model which would have seen a surviving bank emerge, as such, from the carcass of...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Yes.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. And then if I take you to January of 2011, and it's in core booklet Vol. 1 of your own booklet, and this is a note on the sale of Anglo and INBS deposit books.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Sorry, 123, page 123 of Vol. 1. So it's a note for the Minister on 28 January 2011, and this is when the sale of the deposit book for Anglo and INBS was being examined and there seemed to be an amount of pressure from the troika to press ahead with-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----the disposal of the deposit books as well. Even though, on the top of page 124, it says, "As yet we do not know how to remain in combined entity is to be funded", and yet there seemed to be pressure to proceed on that basis. But, subsequently, on page 126, it says, "Anglo has requested us to consider an "orderly" sale process rather than the more immediate sale process currently...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. So they were disagreeing with the approach of-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----the Government to sell the deposit book, which actually happened subsequently in February 2011.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: The deposit book of Anglo and INBS was transferred-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----to AIB and Irish Life and Permanent.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. And what was their logic in opposing that strategy?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay, we will.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Right. So even at that stage they were still holding out the hope of resurrecting a surviving bank from Anglo?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. We heard from Governor Honohan last week that by November 2010 the total amount of ECB support for the Irish banks normal liquidity and ELA was €131 billion, of which ELA was €45 billion. He said that the ELA was effectively State guaranteed, that it was underpinned by some form of a letter of assurance-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----from the Minister. Is that the case?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: So, there was an effective State guarantee in place of €45 billion of ELA to the ECB-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----in the autumn of 2010.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. And what was your view of the first letter received from Mr. Trichet then in the middle of October 2010 where, effectively, he's saying, "Look, you can take this extraordinary level of ELA support for granted." And he's quite explicit, and of course we know where all of that let to eventually. But what was the view within the Department of the ELA being highlighted in that manner and...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Thank you.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Thank you, Chair. You're very welcome Mr. McCreevy. Mr. McCreevy, during your time as Minister for Finance, did you get anything wrong?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Well it's not good enough for me. Can you go into a bit more detail?