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Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: As an objective observer from outside these shores, what is Professor Black's view as to the view that the Irish people should-----

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: It does raise an important question.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Buyer beware.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Professor Black made a comment that the Irish crisis could have been prevented. How could it have been prevented?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: The former Anglo Irish Bank, one of our banks, grew by nearly 30% per annum over an eight-year period.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: On the four key points Professor Black speaks of, what would have been the antidote to that lethal cocktail to ensure that the Irish banking crisis did not happen?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Let us get to the point. What should have been done? What would have prevented it?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: From what year would we have done that?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: No, in the Irish context.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: So you would have moved in straight away?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: I have a final question. There was lower tier 2 subordinated debt as part of the bank guarantee. To the ordinary person, what is lower tier 2 subordinated debt? It is one feature of our bank guarantee that was very unusual and has never really been properly explained. What is lower tier 2 subordinated debt?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: It would make no sense.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Where is your mother from?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Mr. Nava is interested more in banking than in soccer.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: We are more interested in speaking about soccer.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: I welcome Mr. Nava. I wish to raise a couple of points. The first two pages of his testimony deal with the whole area of supervision, mostly in a European context. Mr. Nava said it was up to the regulators in the individual countries. In terms of risk management and effective early warning systems, how would he view the Irish system? To use football parlance again, was there a situation...

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: But Mr. Nava said that if national supervisors had used their powers to the full extent a number of major difficulties could have been prevented.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Obviously, Mr. Nava was making a statement. In an Irish context, what would it be? Mr. Nava is here as a representative of the European Commission, but in an Irish context, can he elaborate on that statement?

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Correct.

Committee of Inquiry into the Banking Crisis: Context Phase (5 Feb 2015)

Kieran O'Donnell: Capital requirements.

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