Results 18,761-18,780 of 27,945 for speaker:Michael McGrath
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Yes, because Mr. Goggin said in response to Deputy O'Donnell:Actually that night I had no idea of the maturity profile of the bond portfolio in Bank of Ireland but what we did offer into the room, when asked for an opinion on what should be covered, it was very clear having had that dialogue with my colleagues over the course of the evening, the Bank of Ireland position was that senior...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: And was there any contact over the course of that evening with HQ as to the profile of the bank's liabilities? Did you know that the guarantee ended up being €133 billion for Bank of Ireland, that was your share of the guarantee, that €5.2 billion of dated subordinated debt was included in the guarantee in respect of Bank of Ireland? Did you have that detail on the night?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Okay, and you're aware of the evidence of Mr. Boucher that he was surprised at the inclusion of the dated subordinated debt.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Okay. The final question I want to raise is and I'll take you to BOI - Vol. 1, B2, page 99. I'll give a moment for that to come up. Just to put it in context again, it's an extract from a group risk policy committee meeting of 17 April 2008 and I understand you wouldn't have been at the meeting but I just want to raise the issue with you because the lending limits were clearly set out in...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: It was one client-related, is it?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Thanks, Chair.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Thank you very much, Chair. You are very welcome, Mr. Dobey and Mr. O'Rourke. Just for disclosure purposes, Chair, I worked with KPMG in Cork from 1997 to 2001 where I trained and qualified but did not work in any financial services audits, just to put it on the record. Can I start by asking Mr. O'Rourke if any legal action was taken or threatened against KPMG in respect of your audits of...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Not that you are aware of. Would it be correct to state that as partners you do not have limited liability in the legal sense?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Sure. Could there be significant implications for partners and for the firm if any statement was made, for example, that the financial statements during the years which are under review were not prepared, did not give a true and fair view in accordance with the international financial reporting standards or did not contain the sufficient disclosures and property risk? Could there be...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: If somebody relied on the financial statements and if you had made a statement of that kind, but you certainly hadn't, just to be clear.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Auditors would have professional indemnity insurance?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Can I just raise the issue of fees? If my calculations are correct, then KPMG earned over €60 million from 2003 to 2013, between audit and non-audit fee income.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Over that period or for any given year, what percentage of KPMG's total income would the income stream from AIB have represented?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: 2.5%?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Would it have been one of your largest clients?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Okay. Do you believe there was an excessive dependence on the part of KPMG on the fee income that you were deriving from that work?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Okay, but would you accept that 2.5% is still a significant element of your fee income?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: It was a valuable fee income.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Just from looking at the financial statements of AIB which were audited by KPMG and I was looking through 2007, for example. And there are 18 pages dealing with risk management and there isn't a single reference to property and construction. And if I can just put the question in some context, I suppose, for Mr. Dobey, for example, in that year, total loans and receivables to customers were...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (14 May 2015)
Michael McGrath: Okay.