Seanad debates

Thursday, 16 December 2010

Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages

 

3:00 pm

Photo of Paschal DonohoePaschal Donohoe (Fine Gael)

There has been much discussion in the House about the scope and power of public interest directors, whether they have performed well and what they were aware of at different times. The Minister states the role of the special manager will be to act in the best interests of the bank, to which he or she has been appointed. This is not what is required. The purpose of the appointment must be to have someone in a financial institution who will act in the best interests of the entire financial system and ensure the institution does not end up posing a systemic risk. It is important to emphasise this point.

The Bill proposes to establish a new role of special manager who may be called upon should a further dire emergency arise and who will have much greater powers than those of a public interest director. I understand the role of the special manager will not be to serve the interests of the financial institution, to which he or she is appointed, but to protect the national interest and try to ensure the bank does not cause difficulties for the overall financial system. We should start drawing up a panel of potential special managers because the wisdom and skill they will require appear to be somewhat lacking among those who have been performed similar roles.

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