Banking crisis reports set to criticise Govt

Two separate reports into the banking crisis are expected to be published tomorrow after being examined at a special meeting of the Cabinet.

Drawn up by Central Bank governor Patrick Honohan and by international banking experts Max Watson and Klaus Reglin, the documents are understood to be critical of the Government’s budget during the boom and the regulatory authorities.

They will inform the terms of reference of an inquiry to be set up by the end of the month.

Fine Gael leader Enda Kenny again demanded Taoiseach Brian Cowen give his evidence to the banking inquiry in public.

“When I challenged the Taoiseach to give such a commitment last January in the Dáil, despite some evasiveness on the issue, he eventually did say that there was ’no problem on my part’ in giving his testimony to the banking inquiry in public,” he said.

“Ahead of the publication of the first two reports on the banking crisis that will ultimately guide the terms of reference of the full banking inquiry, the Taoiseach should now restate his willingness to give his testimony in public and confirm that this is, in fact, what will happen.”

Mr Kenny said Mr Cowen, as the former finance minister, was among a group of three people – along with the former Central Bank governor John Hurley and ex-financial regulator Patrick Neary – directly charged with overseeing the country’s financial system.

As the only one still in office, Mr Cowen should be seen to be publicly accountable for his actions, the Fine Gael leader insisted.

“All the thousands of lives that have been shattered by the banking and financial collapse deserve nothing less,” he said.

Labour finance spokeswoman Joan Burton said the reaction of the Taoiseach to the reports will reveal whether he is a national leader or a party leader.

“To date, Brian Cowen has chosen to go into defensive mode about his earlier policies and actions,” she said.

“If he maintains that posture after today, it will mean he is unable to learn the lessons of past mistakes and is unworthy of office as Taoiseach.”