Banking Inquiry: State was told not to include duo in deal

The mystery over why Anglo and Irish Nationwide were included in the blanket bank guarantee deepened after another senior banker said yesterday that he advised the Government not to include the stricken firms in the deal.

Former AIB chief Eugene Sheehy said he “did not understand” why they were included in the September 29, 2008 agreement because he told then finance minister Brian Lenihan and then taoiseach Brian Cowen the guarantee should be limited to just four banks.

Speaking at the latest banking inquiry meeting, Mr Sheehy — who was AIB chief at the time of the crash — said it was widely believed Anglo and Irish Nationwide were likely to collapse.