Eugene Regan (Fine Gael)

The Minister of State has said that there was a reputational effect of the disclosures about directors' loans, and particularly the activities of Mr. Seán FitzPatrick, the loans which he secured and the manner in which they were transferred prior to auditing of the accounts. The question is how did that reputational effect manifest itself if not in a run on the bank. If the Minister of State could be clear on this point, which has been asked in different ways by a number of Senators, we could be clear and perhaps understand what the Minister is about.

The Minister, in his written statement, makes very clear his view that Bank of Ireland and Allied Irish Banks are fundamentally sound and solvent institutions. He does not say the same about Anglo Irish Bank. The question which then arises is what changed between the disclosures on 19 December last and one month later, when the Minister decided that recapitalisation was inadequate and that nationalisation was required.

The Minister of State did not respond to my other question on the extent to which directors' loans are secured by reliable assets. Perhaps there is no answer and the Minister of State has no facts and figures about this, which again would suggest that the Minister does not know the true state of affairs within Anglo Irish Bank. I would ask the Minister of State to respond to those two questions.