NTMA boss had cut deposits with Anglo
Published 16/09/2010 | 05:00
which NTMA deposited its typical cash holdings of €5bn-€10bn were regularly assessed by senior NTMA executives, partly based on their ratings from the credit rating agencies.
NTMA traders would be told how much they could deposit with each bank. "I would sign off on that, and I would also be told if any of the limits were breached," Dr Somers said.
"We made the Anglo decision long before there was any issue with the bank or a crisis."
The NTMA kept around €100m each in AIB and Bank of Ireland. In 2007, it deposited €40m with Anglo, at a time when deposits were weakening, and after what Dr Somers described to an Oireachtas committee as "pressure" to resume deposits.
"We preferred AIB and Bank of Ireland because they had a wide spread of small depositors. But I spent only a few hours a year on this assessment of banks. It was a minor task and I wasn't lying awake at night worrying about Anglo."