Wednesday 7 December 2016

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.

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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."

Irish Independent

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