Key bank guarantee players to be grilled in public

The public grilling of key players involved in the fateful bank guarantee that resulted in costs of €64bn to the Irish people will get underway by October.

A lack of documentation or written evidence on the September 2008 decision will mean that a nine-person Oireachtas committee looking into the issue will have to rely on the accounts of politicians, bankers, civil servants and regulators involved.

Former Fianna Fáil leaders, Brian Cowen and Bertie Ahern have already indicated their willingness to give evidence.

Former financial regulator, Patrick Neary, is also likely to be called.

The Cabinet yesterday agreed to establish an Oireachtas committee to inquire into the collapse of the financial system.

Its proposed chairman, Labour TD, Ciarán Lynch promised the inquiry would be thorough but will stick to specific terms of reference so that it is concluded in time and without running into extra costs.

Mr Lynch said there was a general narrative around the banking collapse “but what we haven’t had is the characters who played such a pivotal role in the decisions around that period, giving an account first hand and doing so in a public manner.”

A motion to establish the inquiry will be before the Dáil next Tuesday, after which the committee will compile terms of reference.

The inquiry itself will then take three stages, according to Mr Lynch.

Firstly, the evidence-gathering and research process will take place, then the witness modules will take place in public hearings, then the committee will draw up a report and make recommendations.

It will not be able to make any findings of culpability against any individuals.

Taoiseach Enda Kenny told the Dáil: “I would expect the committee will be up and running by late September or early October, having gone through detailed and complex preparatory analysis.”

Earlier, he told a press event it was important to find out what happened and criticised what happened.

He criticised what he described as the “catastrophic consequences of light-touch regulation” during the Fianna Fáil period in government, which he said can be seen “in every parish around the country.”

This prompted Fianna Fáil’s finance spokesperson, Michael McGrath, to say that the inquiry was getting off on “the wrong footing.”

“It indicates that people right at the very top of Government seem to have already made up their mind about what happened.”

Sinn Féin’s finance spokesperson, Pearse Doherty, said it’s “regretful” that the Government did not consult with opposition parties and announced the inquiry through the media.