MINISTER FOR Finance Brian Lenihan challenged the accuracy of an Irish Timesarticle on the banking system.
Mr Lenihan said the article, (written by UCD professor of economics Morgan Kelly), had suggested that when the Government decided to extend the bank guarantee to six financial institutions, a Bill was in existence to rescue only four and that the sudden liquidation of Anglo Irish Bank was contemplated by the Government.
“That is simply untrue. The only legislation before the Taoiseach and me on that evening – the members of the Government were consulted incorporeally – was a Bill which, in all material terms, is the same as the Bill before the House today.
“The only decision the Government had to take was whether we would proceed to guarantee all six institutions or whether we could contemplate the nationalisation of this institution, as we are doing, and guarantee the rest of them.
“We took advice on this matter and had a discussion with the Governor of the Central Bank, the regulatory authority and the officials of my department.”
The Minister added that a decision to nationalise one institution could have caused a run on all other institutions. To say he had not taken the advice of his officials was untrue, he said.
“This is linked to a later suggestion that the bank existed purely as a vehicle for property speculators who are of systemic importance to my party. I was never in the tent at the Galway races and never visited the Galway races, nor did I receive representations from developers or bankers about this particular financial institution.”
Mr Lenihan was replying to Labour’s Pat Rabbitte who had referred to the Minister’s “gifted bedside manner” which contrasted with some of his “crabbier” colleagues.
"However, when he denounces Morgan Kelly's latest contribution to today's Irish Times, I would like to hear more detail."
