Banking Inquiry: Ahern ‘never told specifics’ on Quinn

Ex-taoiseach Bertie Ahern has insisted he was never told about the specifics of developer Seán Quinn’s issues with Angle Irish Bank — despite a private meeting at his home with Brian Cowen days after the 2008 St Patrick’s Day stock exchange “massacre”.

The former leader of Fianna Fáil made the claim at the banking inquiry yesterday, a meeting which also saw him argue that nobody told him Ireland was facing “boom or bust”, that he only knew banks had “liquidity” issues, and that he is not responsible for financial regulator failures.

Mr Ahern said

he has “no recollection” of being told the specifics of Mr Quinn’s issues.

The Cavan developer was a key factor in Anglo’s brewing internal crisis at the time due to complex “conflicts of interest” loans, to such an extent that previous inquiry witnesses have said his debts alone could have destroyed the country.

While he said he was told of Mr Quinn’s problems, Mr Ahern stated: “I have no recollection of that particular issue, I have no knowledge of it.”

He confirmed he and his then finance minister, Mr Cowen, met in private at Mr Ahern’s Drumcondra home days after a fifth of Anglo’s share price were wiped out in the 2008 St Patrick’s Day stock exchange “massacre”.

Mr Ahern said Mr Cowen “came straight to me” after flying home from a Vietnam trade mission as “we were both concerned”.

Despite the damage it would cause the country, Mr Ahern — who would resign weeks later due to pressure from the Mahon tribunal — said he left the matter to Mr Cowen as “he was more deeply involved in Anglo”.

While initially saying he was left unaware of the brewing economic crisis and blaming separate international difficulties for the crash, Mr Ahern said the government was discussing concerns from autumn 2007.

He claimed the wider banking sector issues were about “liquidity”, insisting the economic “fundament-als” were safe when he left.

Mr Ahern told Socialist TD Joe Higgins he bears “no responsibility” for failures on the parts of the Central Bank and financial regulator Patrick Neary as they were purposely kept separate from politics. He said he “never” met Mr Neary for work reasons.

Mr Ahern said it was “hardly regulation” and that he “naively” thought “people were on top of these issues”. Mr Higgins suggested Mr Ahern was in fact responsible, as he changed the rulebook with the 2004 document, ‘Better Regulation’.

Citing the speech launching that plan, Mr Higgins said Mr Ahern was clear about government’s role in “assisting” banks with their “bottom line”.

Mr Ahern denied he supported light-touch regulation, and said Mr Higgins was being “misleading, whether intentionally or deviously”.

He faced further criticism from senator Marc MacSharry, a former Fianna Fáil colleague, who questioned how he could have been unaware of a property bubble when his own brother — then housing minister Noel Ahern — said in September 2006 that banks were taking part in “greedy and reckless behaviour”, “hyping” the market, and creating “false demand”.

Accepting the concerns were raised, Mr Ahern told Mr MacSharry there was nothing wrong with the developer-linked Galway Tent, saying “yes they were” when asked if his former party was “wrong” to scrap it.

Meanwhile, the DPP has told the inquiry it can interview ex-Anglo director Peter Fitzgerald despite him giving evidence to the ongoing trial related to the financial institution. Another former director at Anglo, Willie McAteer, does not have to attend for the same reason.