Coughlan: Govt 'appalled' by Anglo events

Tánaiste Mary Coughlan told the Dáil today that the Government is "appalled" by what has happened at Anglo Irish Bank and she insisted the loans extended to the directors of the bank will be pursued vigorously.

Meanwhile Finance Minister Brian Lenihan has denied he did a "secret deal" with the EU to get permission to pump €18bn into Anglo.

In the Dáil today the Tánaiste vowed disgraced ex-directors from the bank would be vigorously chased for more than €1m in outstanding loans.

Insisting everyone was appalled by the goings-on at the rogue lender, she said she had full confidence in the ongoing investigations by the Garda fraud squad.

“All the directors loans will be pursued vigorously,” she said.

“I have full confidence in the Garda investigation that has been taking place, where there has been considerable progress.”

But Ms Coughlan refused to be drawn on demands by Opposition leaders that the terms of the banking inquiry be extended to cover the weeks leading up to the State bank guarantee in September 2008.

Fine Gael leader Enda Kenny said the truth needed to come out about “intense activity” between the Government and Anglo in the run up to the €400bn taxpayer-backed scheme.

“I understand there is a great deal more to come out that will not be very edifying either – we need that inquiry set up beyond that date,” he said.

Labour leader Eamon Gilmore also called for the terms of reference to be amended to allow scrutiny of the Government’s own decisions.

Opposition demands for more time to discuss the banking bailout were also dismissed by the Tánaiste.

Fine Gael’s deputy leader and finance spokesman Richard Bruton said 70% of the recapitalisation money from the public purse was being pumped into Anglo, while the bank would not be lending any money to small or medium sized businesses.

The Government was also criticised for voting in favour of the Dáil taking Easter holidays until April 20.

Sinn Féin’s Caoimhghin O Caolain said it was excessive while Mr Gilmore branded it unacceptable during the present economic climate.

Meanwhile Labour's Joan Burton claimed the Government went to the EU earlier this year without telling the Dáil that it intended to invest massive sums of taxpayers' money into the bank, a move she called "a disgrace".

Minister Lenihan however rebutted the charge.

"There is not such secret agreement," the Finance Minister said. "An open agreement was arrived at with the European Commission on Tuesday morning."

As public outrage over the scandal at the rogue lender continues to mount, a small group of protestors this afternoon staged a demonstration outside the bank's headquarters in Dublin.

The hour-long protest was organised by Socialist Party MEP Joe Higgins.