The late night talks with bankers followed by the offer of a guarantee they say they didn't ask for. 2 cabinet ministers making the decision while the rest phoned in their agreement -including all of those in Dublin e.g., Gormley. He could have cycled there in 25 minutes.
Who now believes Lenihan and Cowen's incredible version of events on the blanket bank guarantee?
From Willem Buiter’s Maverecon:
"When Ireland was about to be swept away by a wave of global financial mistrust triggered by the Irish government’s decision to guarantee effectively all liabilities of its banks, the then German Finance Minister Steinbruck made the amazing statement (which he obviously had not checked with his coalition partners, his Chancellor or his voters) that the Eurozone countries would not let one of their own go into default".
FT.com | Willem Buiter's Maverecon
(William Buiter: Professor of European Political Economy, London School of Economics and Political Science; former chief economist of the EBRD, former external member of the MPC; adviser to international organisations, governments, central banks and private financial institutions).
"...Ireland was about to be swept away by a wave of global financial mistrust triggered by the Irish government’s decision to guarantee effectively all liabilities of its banks."
Lenihan says the blanket guarantee was a masterstroke! Another confirmation of how shockingly irresponsible it was. Guaranteeing the existing bondholders of the banks, rather than future bondholders, was totally unnecessary and indeed inexplicable. I believe it was the single most irresponsible financial decision of any democratic west European government since World War 2. This is further confirmation of the urgent and immediate need for an independent, fearless, mainly non-Irish & non-Irish led expert team to swiftly investigate the extraordinary events surrounding it.
It is also confirmation of the even more urgent need to stop the loss of €40Bn through NAMA.
What do you think?