Former regulator 'told Taoiseach Anglo was not insolvent'

Former regulator 'told Taoiseach Anglo was not insolvent'

The former financial regulator told the Taoiseach that Anglo Irish Bank was in good health just 72 hours before the Government had to move in to save it, according to reports today.

The Irish Independent reports that, according to documents being investigated by the Dáil's spending watchdog, Patrick Neary insisted Anglo was not insolvent.

The details of Mr Neary's communications with the Government will be revealed in documents to be published on the Oireachtas website later today.

Today's Irish Independent reports that Patrick Neary gave the assurances to Brian Cowen at a confidential meeting just three days before the Government was forced to introduce the €440bn state banking guarantee.

He told the Taoiseach there was no evidence to suggest Anglo was insolvent on a going-concern basis just days before the Government was forced to step in to save the crisis-hit bank from going under by including it in the state guarantee scheme.

Anglo eventually had to be nationalised by the State and, so far, €14bn of taxpayers' money has been injected into the institution to keep it afloat.

Mr Neary was given a severance package worth more than €630,000 when he resigned from his position in January last year.

Today the Dáil spending watchdog will publish 50 key documents supplied by the Department of Finance to the PAC which will detail events leading up to the bank-guarantee scheme.

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