PAC set to hold inquiry into banking crisis

The Dáil's Public Accounts Committee (PAC) said today it aims to conduct a public inquiry into the collapse in the financial markets which led to the banking crisis.

The PAC today said legal advice suggests it has the power to carry out an investigation into the crisis, and also into the actions of public bodies such as the Financial Regulator, the Central Bank and the Department of Finance.

It will now draw up terms of reference for the inquiry, which will establish the facts behind the banking crisis but cannot make findings.

The PAC said evidence will be heard in public.

"Our next step is to draw up terms of reference and have them legally stress-tested," said PAC Chairman John McGuinness.

"It is only at this stage that the PAC will be in a position to decide whether to proceed with an inquiry.

Deputy McGuinness said that by conducting an investigation and taking evidence in public, the inquiry would provide an important function in bringing clarity to other reports and commentary on the banking crisis, and would put the information on public record.

As well as being presented to the Dáil, the inquiry could form the foundation of any other report that may be conducted into the banking collapse, he added.