FEBRUARY:Government hires Dr Peter Bacon to examine whether a "bad bank" asset management firm or risk insurance programme should be established to deal with development and property loans in Irish banks. In the month after his appointment, he speaks daily with top officials in the NTMA, among them its chief executive Dr Michael Somers (left) and directors Brendan McDonagh and John Corrigan.

MARCH:In advance of two draft reports he submits to the Government, Dr Bacon makes a presentation of his thinking in favour of the asset management option to Minister for Finance Brian Lenihan and officials from the Department of Finance, the Central Bank and the Financial Regulator.

APRIL: At a meeting in Government Buildings chaired by Taoiseach Brian Cowen, Dr Bacon's formal proposal as set out in a Government Memorandum is presented to officials from the NTMA, the Central Bank and the Regulator. Government adopts plan to establish Nama in tandem with emergency budget.

MAY:McDonagh named interim head of Nama. Dr Somers tells Public Accounts Committee he knows very little about the plan "apart from what has appeared in the newspapers". McDonagh asks banks and building societies covered by State guarantee to provide comprehensive breakdown of their loan books to facilitate planning for the project.

JUNE: Heads of the Nama Bill to be published. The new organisation will recruit banking and financial services advisors.

JULY:Lenihan to publish Nama legislation in full. If required to facilitate enactment of the legislation, the Government will recall TDs and Senators from their summer holiday.

McDonagh believes Nama will be able to take control of problem loans between six and eight weeks after the new body is established on a statutory footing.