Govt wants finance expert to chair banking inquiry

The Minister for Finance Brian Lenihan has said the Government is seeking an international expert on finance to chair its banking inquiry.

Mr Lenihan said he did not want an Irish lawyer to chair the investigation, because it requires a detailed knowledge of banking.

The inquiry will examine the mistakes made by banks which contributed to the collapse of the system.

The Labour Party has raised fears that the investigation will escalate into a bonanza for the legal profession.

But Minister Lenihan said he is looking for an expert on banking "to ensure that the inquiry keeps its focus".

Labour have said the Government should consider not going ahead with the proposed Commission of Investigation into the banking crisis.

The Governor of the Central Bank has already proposed an investigation of each of the banks and the reports being discussed at an Oireachtas Committee.

The Government is to meet with Opposition parties next week to decide on the terms of reference for any inquiry.

But Joan Burton said, despite claims the Commission would finish in six months, she thinks it could end up being as long and costly as the Dublin Castle tribunals.