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A man reads about the bank guarantee on 20 September 2008. PETER MORRISON/AP/Press Association Images
Meltdown Monday
Fianna Fáil on banking inquiry: Don't just focus on guarantee night
The party has urged government to deal with the root causes of the banking collapse.
FIANNA FÁIL HAS urged the government not to focus solely on the infamous night of the bank guarantee in its inquiry into the country’s banking collapse.
In a statement this evening, finance spokesperson Michael McGrath said the probe “should deal with the root causes” of the bust, as well as the decision taken in the early hours of 30 September 2008.
“It would appear that the government is set to publish new legislation paving the way for an Oireachtas committee to carry out an inquiry in Ireland’s banking collapse,” he said.
“According to media reports, the government is anxious that the inquiry would focus on the night of the bank guarantee in September 2008. Such a narrow approach would, in my view, be a wasted opportunity to get to the bottom of what led to the crisis in the first place.
It would also raise concerns that the government is more interested in playing politics than getting to the truth of what happened to the banking sector in this country.
McGrath conceded that the decision to guarantee bank deposits and liabilities and the political handling of the crisis should “undoubtedly form an important part of the inquiry”. But he added that the regulatory regime in the years leading up to 2008 should also be examined. As should the approach to risk managements within banks, corporate governance, the reward culture and the role of external auditors, he continued.
“In framing any inquiry, the government must have regard to the decision of the Irish people in 2011 to reject a constitutional referendum to bolster the investigative powers of committees.
“In my view this rejection was largely based on the public’s fear that politicians would not be able to put politics to one side while undertaking such inquiries. This forthcoming legislation and any terms of reference is an opportunity for the Government to prove that they are acting in good faith and have a genuine desire to understand what happened.”
It is understood the legislation to provide for the Oireachtas inquiry is ready but a queue in publishing bills is holding it up.
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