Foreign depositors 'couldn't distinguish between AIB and Anglo', Banking Inquiry told

The belief that foreign investors could not distinguish between Allied Irish Banks and Anglo Irish Bank contributed to the Government's decision to saved the doomed lender, the Banking Inquiry was told today.

Two former auditors have told the Inquiry that the Government had discussed the nationalisation of Anglo before deciding on the bank guarantee.

Live video feed may not work across all mobile devices.

Two partners at Price Waterhouse Coopers said that the prospect of nationalising the bank was discussed with then-Taoiseach Brian Cowen four days before the guarantee was agreed.

Speaking at the inquiry, former auditor Dennis O'Connor said it became important to save Anglo Irish Bank - albeit for a bizarre reason.

"Depositors from other parts of the world really couldn't distinguish, it's hard to believe that they couldn't, between AIB [Allied Irish Banks] and Anglo Irish Bank, and the contention [was], in fact, that if one bank was to go, it would have knocked everything else over at the same time," he said.

"So it was key that all confidence was kept in the market and that whatever was to happen, it was to happen in an organised manner in the next number of days."

More on this topic

Banking Inquiry members to review responses to draft reportBanking Inquiry members to review responses to draft report

Banking Inquiry Committee agrees on draft report despite objectionsBanking Inquiry Committee agrees on draft report despite objections

ECB went beyond mandate issuing ultimatum to Ireland, says former IMF mission chief ChopraECB went beyond mandate issuing ultimatum to Ireland, says former IMF mission chief Chopra

Lenihan wanted to burn bondholders and rebrand Anglo as 'An Banc Nua', inquiry toldLenihan wanted to burn bondholders and rebrand Anglo as 'An Banc Nua', inquiry told


More in this Section

Pedestrian, 70, being treated for life-threatening injuries after collision with carPedestrian, 70, being treated for life-threatening injuries after collision with car

All women and families impacted by CervicalCheck scandal to get Dáil apologyAll women and families impacted by CervicalCheck scandal to get Dáil apology

Killarney deer struggling to walk suffering from suspected 'staggers' conditionKillarney deer struggling to walk suffering from suspected 'staggers' condition

National Bravery Awards: 'The award for me is that he is alive today'National Bravery Awards: 'The award for me is that he is alive today'


Lifestyle

Sunday Lunch costs €45 per person and includes several set courses but with a choice of mains.Restaurant Review: Bastible Restaurant, Dublin

It never ceases to stop me in my tracks when I hear my husband intone to our children one of the oft overused phrases from my stockpile of, “Can you just not?” categories.Lindsay Woods: If my children feel I’m doing it wrong then I must be doing it right

The season of mists and mellow fruitfulness — John Keats had it right about autumn.Eyes on the pies: Eight apple tarts put to the taste test

In honour of our Made in Munster special edition, Joe McNamee creates a four-course meal showcasing the best produce from the province. And there’s a lot to celebrate.The Menu's Made in Munster six course dinner - One from each county

More From The Irish Examiner