Cabinet was told of Seán Quinn’s Anglo debt

The Government was warned two months before the September 2008 bank guarantee that Seán Quinn’s debts to Anglo Irish Bank were enough to bring down the financial sector.

The situation emerged during the latest banking inquiry meeting, which also heard that senior Central Bank officials discussed a guarantee in October 2007 — and saw calls for extra regulatory staff ignored.

The former director general of the Central Bank, Tony Grimes, said the Quinn debts threat was highlighted during a meeting between him, the financial regulator, and the Department of Finance in July 2008.