Kenny: I’ll uncover truth behind ‘axis of collusion’

Taoiseach Enda Kenny pledged to uncover the truth behind “the axis of collusion” between Anglo bankers and Fianna Fáil but rejected calls for an independent banking probe.

He dismissed the demands despite claims that a promised Oireachtas probe would be powerless to hold bankers to account.

Mr Kenny yesterday told the Dáil there was a need to establish “the truth” and to remember the thousands of victims [property owners] of the “axis of collusion” between Anglo, Fianna Fáil, and bankers.

“The banks were agents of the government and the issue was to keep the property bubble booming, keep prices up and keep people getting mortgages they could not pay back for very many years.”

He pledged that an Oireachtas banking inquiry would be set up by the autumn following fresh revelations about Anglo executives around the time of the 2008 banking guarantee. However, he said any Oireachtas banking probe was likely to be challenged. Public Expenditure Minister Brendan Howlin went further last night and said any inquiry would have to “cease” if criminal court cases begin against bankers.

Debate intensified over what type of inquiry would investigate Anglo and the banking system following the emergence of taped telephone conversations of executives at the bust bank, just days after the bank guarantee was introduced.

In the recordings, former Anglo CEO David Drumm is heard being dismissive about the bank guarantee. He urges bank executives to “get the money in”.

The bank chief is also heard laughing as an executives sings Deutschland Über Alles as deposits from Germany flowed into Anglo on the back of the bank guarantee.

Fianna Fáil leader Micheál Martin argued that an independent probe into the banking collapse could be modelled on Britain’s Leveson inquiry. However, a government spokesman last night said the Coalition’s preference was for a parliamentary inquiry.

Meanwhile, a Labour Party senator has made a formal complaint to gardaí about the actions of two former Anglo officials.

A senior garda confirmed Senator John Gilroy made the complaint to Mayfield Garda Station, Cork, on Monday. Mr Gilroy said his complaint was prompted by the recordings released of Anglo executives John Bowe and Peter Fitzgerald this week, which showed the bank deliberately underestimated how much of a bailout it would need.