The government says the Banking Inquiry will be limited to examining why the banks failed, and will not examine the government's response to the failure. Any promise to release documents to the Banking Inquiry has to be seen against that limitation - it will not be given any paperwork relating to the government response. Given how the decision was taken, though it became a government response, it was in reality the response decided on by just two men: the Taoiseach and the Minister for Finance. And there is to be no inquiry into that.
So it is up to us citizens to figure out why they responded as they did.
Why did the Taoiseach and MinFin reject nationalisation of Anglo Irish Bank and instead guarantee all of its liabilities?
The Taoiseach and Minister for Finance says that they were under awful pressure. Decisions had to be taken at speed in the middle of the night. They acted on the best advice from the Financial Regulator, NTMA, Central Bank, and Department of Finance. They took the least worst option as it appeared to them at the time.
But is that true?
Today some more light is cast on the events of that evening by Simon Carsley here .
The government has issued a classic 'non-denial denial' of claims that legislation to nationalise Anglo Irish Bank was available on the night.Originally Posted by Simon Carsley
It is widely accepted across all shades of political opinion that the guarantee given in respect of Anglo Irish Bank was a mistake.
We need to learn from mistakes to minimise our chances of repetition. Given our history of banking scandals and insurance industry scandals, each more expensive than the last, that may be a pipe-dream but let's try.
Why did this mistake happen?