Bernard Durkan (Kildare North, Fine Gael)
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Question 65: To ask the Minister for Finance the extent to which he sought or received an audit report in respect of Anglo Irish Bank before committing State and taxpayers' support; if the full extent of liability and banking practices were thoroughly investigated and by whom prior to or after the commitment to a rescue package or nationalisation; if he, the Central Bank or the regulatory authorities have identified practices or procedures that were not in accordance with guidelines and undertakings issued after the DIRT inquiry; if disciplinary action has been taken or is expected to be taken arising therefrom; and if he will make a statement on the matter. [6201/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Under the terms of the Guarantee Scheme, there are reporting requirements for all covered institutions, including Anglo Irish Bank, to monitor compliance with the objectives of the Scheme, which include maintaining financial stability and minimising the potential cost to the Exchequer and taxpayers.

Also, as the Deputy will be aware, PricewaterhouseCoopers were commissioned by the Financial Regulator to conduct a review of the loan books of all of the covered institutions, including Anglo Irish Bank, the initial assessment of which was received towards the end of October.

In addition, a Due Diligence exercise was conducted at Anglo on my behalf, in late December and early January, as part of the then proposed recapitalisation of Anglo. This Due Diligence covered all aspects of Anglo's business, including the bank's liabilities and its banking practices.

As the Deputy will be aware, the Government made it clear when nationalising Anglo Irish Bank that an important factor in reaching this decision related to concerns over corporate governance issues and market confidence in the bank.

It would not be appropriate for me to comment on or prejudge the outcome of the investigations which are now being conducted by the Financial Regulator and the Office of the Director of Corporate Enforcement in relation to corporate governance issues at Anglo. However, as Minister for Finance and shareholder, I will ensure where appropriate that any issues identified on foot of these investigations are properly addressed.

Furthermore, the new Board of Anglo is reviewing all the corporate governance practices of the bank and will put arrangements in place to guide the bank in the future. I am confident that the new Board will pursue the necessary changes in this regard.