Ross calls for resignation of Financial Regulator

SEANAD REPORT:THE CREDIBILITY of the Government's banks guarantee scheme was in serious danger, Shane Ross(Ind) warned. The state of affairs which had necessitated it was not over, and that was very worrying.

Mr Ross said the Financial Regulator should resign because he bore a responsibility, with others, for what had happened.

A matter of particular concern was that the guarantee was obviously not convincing the markets that it had a great deal of credibility, although he regarded the Government action as a tremendous pre-emptive strike.

"But to give a guarantee for €400 billion when you can't possibly ever pay it really defies people to come and get you and say 'look, what's this all about'?"

He said the national debt was about €43 billion and we were not a particularly healthy economy now. We were not expecting to have to deliver on the undertaking that had been given, but it was very unusual, in banking or commercial terms, for anybody to accept a guarantee from anyone who could not actually pay it off.

The Government should immediately reveal the details of the deposit guarantee scheme.

Eugene Regan(FG) said his party had taken the Government's proposal on trust and had given it qualified support. "We know that it's only a temporary reprieve and we can see that from the market's movements this week."

He stressed the need for clarification on the issue of the distinction between liquidity and solvency and the capitalisation of the banks, the quality of the assets they held and the manner in which they valued them.

Alex White(Labour) said he had rubbed his eyes on reading that a senior banker had suggested the need for cuts affecting State pensions, medical cards and universal child benefit. This individual's bank had been the beneficiary of extraordinary largesse.

If he had trouble with "the day job" - and it had looked last week that he might have difficulty with it - perhaps he could have a future in the entertainment industry as a comedian of some kind.