Friday 20 October 2017

First reference to blanket guarantee three days before decision - NTMA

Brendan McDonagh
Brendan McDonagh

Clodagh Sheehy

The first and only reference to a blanket bank guarantee made to the National Treasury Management Agency (NTMA) came in an email three days before the decision, the Banking Inquiry was told.

Brendan McDonagh, former director of finance, technology and risk at the NTMA, said he had been sent the email by assistant secretary of the Department of Finance William Beausang.

A refusal by Nama to increase deposits to Irish banking institutions as they lost liquidity had also "caused considerable tension, but the NTMA maintained its position".

Mr McDonagh said the email from Mr Beaumont referred to a possible total funding requirement of about €100bn for the two institutions expected to be nationalised - Anglo Irish Bank and Irish Nationwide Building Society. This was in addition to a wider guarantee for the other institutions.

Michael Somers, former CEO of the NTMA, said the guarantee was probably the best course of action to stop a run on the banks.

Irish Independent

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