Merrill Lynch 'warned Govt that banks guarantee could be mistake'

The Public Accounts Committee is releasing documents relating to events in the lead-up to the Government's decision to impose a banking guarantee in September 2008.

Financial management company Merrill Lynch warned Minister Brian Lenihan that a blanket guarantee to cover all banks could be a mistake, according to documents released today by the Public Accounts Committee.

About 50 documents have been released, relating to events in the lead-up to the Government's decision to impose a banking guarantee in September 2008.