Sunday 19 November 2017

Banks were all solvent on night guarantee was signed off

Former Financial Regulator Patrick Neary arrives for the Banking Inquiry hearing
Former Financial Regulator Patrick Neary arrives for the Banking Inquiry hearing
Independent.ie Newsdesk

Independent.ie Newsdesk

Not alone were all the banks solvent, but there was "some surplus capital" in the system on the night of the Bank Guarantee, according to former Financial Regulator Patrick Neary.

Mr Neary told the Banking Inquiry that, based on his information, "from all sources there was no evidence there was a solvency issue in any institution".

He described how on the night of the Guarantee he went to Government Buildings with the Chairman of the Irish Financial Services Regulatory Authority.

"The meeting was in the process of discussing the serious liquidity position of Anglo and what facilities could be made available to it to help it survive until the weekend."

Mr Neary and the chairman had told the meeting that based on their information "all banks were in compliance with their required capital ratios" and were in a position to meet their obligations but liquidity was becoming a critical issue for them, especially Anglo. He told Fianna Fáil Deputy Marc MacSharry there was "no Eureka moment" and when a blanket guarantee was agreed "a consensus arose".

Irish Independent

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