Patrick Honohan clarifies bank inquiry queries

The Government should have nationalised Anglo Irish Bank and Irish Nationwide in September 2008, replaced the management teams, and put in place a much more limited guarantee for the two banks, Central Bank governor Patrick Honohan has told the Oireachtas banking inquiry.

Moreover, in a letter to Ciaran Lynch, chairman of the inquiry, Mr Honohan said emergency liquidity assistance should have been provided to both banks, enabling the Irish authorities to consult with European authorities about the possibility of risk sharing among other issues.

Mr Honohan appeared before the inquiry on January 15 and his letter addresses a number of outstanding queries from his testimony. He said that, during his appearance, he outlined a number of different instances of what could and should have been done with Anglo and Irish Nationwide by the Irish authorities in September 2008.