What the Taoiseach told the Dáil
TAOISEACH BRIAN Cowen has been accused of a serious contradiction between what he is now saying about how the crisis at Anglo Irish Bank emerged and what he told the Dáil almost two years ago.
In a statement to the Sunday Times at the weekend, Mr Cowen confirmed that he had received a telephone call from the then boss of Anglo Irish Bank, Seán FitzPatrick, in March 2008, when he was minister for finance. It related to the problem created by the massive shareholding built up in the bank by businessman Seán Quinn. In his weekend statement Mr Cowen said he told Mr FitzPatrick that he would “refer the issue to the governor of the Central Bank and I did so”.
What the Taoiseach said in the Dáil on February 17th, 2009
The Taoiseach was questioned about the issue in the Dáil by Fine Gael leader Enda Kenny and Labour Party leader Eamon Gilmore on February 17th, 2009.
In response to Mr Kenny, the Taoiseach said: “A meeting took place last March at which the governor indicated to me, as minister for finance, that a situation was developing in regard to the contracts for difference issue in Anglo Irish Bank. That had to be dealt with by the bank. It proceeded with that and Mr Quinn made a statement on July 13th relating to it. It was indicated at that time that the matter had been resolved.”
Replying to a subsequent question from Mr Gilmore about the Quinn investment, the Taoiseach said: “As minister for finance I became aware, from contacts between the Department of Finance, the governor and the Financial Regulator over the course of last year that a large overhang of shares were held by the Quinn group and related persons in the family. This was considered by the bank and the market to be a source of instability and the institution was seeking a resolution of the issue. The details of this were a matter for Anglo Irish Bank and, as appropriate, the Financial Regulator.”
Mr Gilmore pursued the issue and in response Mr Cowen said: “Deputy Gilmore suggested that he found it difficult to believe me. I am telling the truth . . . I will not get involved in rumour or anything else. I deal with the facts, and the facts are as I have outlined.
“If Deputy Gilmore accepts my integrity, as he says he does, that is the situation, and I have no reason to say otherwise. If I knew I would tell him.”