Peter Mathews (Dublin South, Fine Gael)
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Question 104: To ask the Minister for Finance if Goldman Sachs has been retained professionally by his Department, the National Treasury Management Agency or by any body under the aegis of his Department, including the banks under majority Government control; and if he will make a statement on the matter. [19698/11]

Michael Noonan (Limerick City, Fine Gael)
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In response to the Deputy's question, Goldman Sachs has not been retained professionally by my Department. The National Treasury Management Agency (NTMA) appointed Goldman Sachs International, following a competitive tender process involving a number of advisory firms, as advisors as part of its Banking Unit's involvement in overseeing the capital raising exercise of the four financial institutions (Allied Irish Bank, Bank of Ireland, EBS and Irish Life and Permanent), following the announcement of the results of the Central Bank's PCAR/PLAR process on 31 March 2011. Fees of up to €7.8m may be payable to Goldman Sachs depending on completion of transactions and performance.

I am informed by the National Treasury Management Agency (NTMA) that it expects to recoup the external advisory fees associated with the NTMA Banking Unit's involvement in the oversight of the capital raising exercise from the four financial institutions (Allied Irish Bank, Bank of Ireland, EBS and Irish Life and Permanent). The fees include the costs associated with achieving burden-sharing with holders of subordinated debt together with costs in relation to raising of additional capital. Goldman Sachs Asset Management has been a National Pensions Reserve Fund investment manager since March 2002, managing a North American equities portfolio. Goldman Sachs Asset Management was appointed under EU public procurement rules.

The NTMA recognised Goldman Sachs International as one of its sixteen Primary Dealers in Irish Government bonds in February 2010. The Primary Dealers each make continuous two-way prices in designated benchmark bonds in specified minimum amounts and within specified maximum bid-offer spreads. They have exclusive access to the NTMA's bond auctions. These are not contractual arrangements and the NTMA does not pay fees to Primary Dealers.

Anglo Irish Bank, which intends to change its name to Irish Bank Resolution Corporation Limited following its merger with Irish Nationwide Building Society, has retained Goldman Sachs International, since July 2006, as the sole prime broker for its AIAC Long/Short Equity fund. The prime broker provides a range of services that relate to cash or security positions including centralised securities clearing facilities, acting as settlement agent, providing custodial services, financing of margined long or short cash and securities positions and associated reporting services.