Tuesday 21 November 2017

Honest Garret

Sir -- Mark Lonergan, in his letter last week, wrongly alleged that a bailout of €200,000 was received by Dr Garret FitzGerald from AIB in the early Nineties.

After retiring from party leadership in the late Eighties, he sought, and was approved by the bank for, a loan to enable him to invest in a company. To the borrower and the bank it appeared a prudent investment, but unfortunately the forecast proved inaccurate.

Around that time a case was taken in the High Court against another individual who found themselves in the same position. The court held that the borrower was not liable to meet the claim by the bank, on the grounds that the bank would have investigated the investment and satisfied itself it was a prudent transaction -- and also that, as the bank held the share certificates for the duration of the loan, it was in control -- and, during the term arising, stood to receive a substantial amount of interest.

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