Banking regulation - Clearly, nothing has been learned

To paraphrase Franklin D Roosevelt, September 29, 2008 is a night “which will live in infamy” yet, unlike the bombing of Pearl Harbor to which he referred, we are no wiser after the event.

Like the fourth secret of Fatima, the infamous night of Ireland’s bank guarantee remains shrouded in mystery, according to a report by the Oireachtas Public Accounts Committee.

This is despite the fact that €122m has already been spent on consultancy costs for financial, legal and accountancy services linked to managing the financial crisis that ensued. There are at least some things that are now clear: the Department of Finance was way out of its depth in dealing with the bluster of bankers and allowed itself to be bullied into submission. It had neither the wit nor the wisdom to challenge the assessments being made by the banks. It even accepted what the banks were saying, even though — unbelievably — there were no written proposals brought by the senior bankers to the department.