# You will be able to watch Pat Neary at the Banking Inquiry tomorrow



## Brendan Burgess (27 May 2015)

*Former Financial Regulator Patrick Neary to appear before Banking Inquiry*

_*27th May 2015*_

Former Chief Executive Officer of the Irish Financial Services Regulatory Authority Patrick Neary will appear before the Oireachtas Banking Inquiry as part of its Nexus Phase public hearings tomorrow, Thursday 28th May 2015.

During the Nexus Phase the Committee is engaging with institutions and individuals who had roles relating to the crisis. It is focusing on three broad elements — Banking Systems & Practices; Regulatory and Supervisory Systems & Practices; and Crisis management systems and policy responses — and how these three elements interacted with each other.

Chairman Ciaran Lynch TD said: *“Tomorrow we will continue our hearings on the role of the Central Bank and Financial Regulator. Among the issues we will be addressing with Patrick Neary relating to his role in the Central Bank and as the Chief Executive Officer of the Irish Financial Services Regulatory Authority are: the appropriateness of the regulatory regime; the effectiveness and appropriateness of the supervision policy and powers; the composition, skills, experience and number of resources at the Central Bank, Financial Regulator and Department of Finance; the effectiveness of the use of supervisory powers; the adequacy of the assessment and communication of both solvency and liquidity risks in the banking institutions and sector; and the awareness and clarity of roles and accountability amongst the regulatory and supervisory institutions of the state.*

*“Other lines of inquiry include: the nature and appropriateness of the relationship between the Central Bank (including the Financial Regulator), Department of Finance and the banking institutions; the effectiveness of the communication between the Central Bank and the Department of Finance; and the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used.*

*“Mr Neary will also be asked to give evidence on the impact of the reliance placed upon information and reporting from statutory auditors of the banks; an analysis and consideration of the response to contrarian views, both internal and external; the effectiveness of internal audit oversight and communication of issues related to governance, property-related lending strategies and risks, and funding and liquidity risks; the adequacy of the DSG process, including a consideration of the bank resolution legislation; the liquidity versus solvency debate; and the appropriateness of the bank guarantee decision.”*

Nexus Phase hearings will run until the middle of September with a total of 64 public hearings planned. It is envisaged that at least 60 witnesses will be called to the public hearings.

Deputy Lynch said: *“This phase of our hearings includes a move by the Committee to compelling witnesses and statements and the use of evidence. Under the witness management protocol, there will be a structured witness engagement with a seven week lead-in between the notification and the public hearing. The protocol includes timescales, evidence books and technical briefings.”*

This meeting will start at 9.30am in Committee Room 1, Leinster House. Full committee proceedings will be webcast live on this website, while Oireachtas TV will broadcast proceedings from 9.30am-6pm.

Further information on the Oireachtas Banking Inquiry can be accessed on the dedicated website: www.oireachtas.ie/bankinginquiry/. Full committee proceedings will be webcast live on this website, while Oireachtas TV will broadcast proceedings from 9.30am-6pm.

Committee proceedings can also be viewed on the move, through the Houses of the Oireachtas Smartphone App, available for Apple and Android devices.


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## Brendan Burgess (28 May 2015)

This has started - Neary is reading his opening statement 

www.oireachtas.ie/bankinginquiry/.


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## Sophrosyne (31 May 2015)

Depressing viewing!

We really need to put in place people who are not fazed by EU directives, who understand the meaning of the word _regulate_, who are not under the thumb of the Central Bank and who have the ability and judgment to rise above the minutiae and see what is in front of their face.


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## Brendan Burgess (31 May 2015)

And who will work for a  lot less than they could earn in the private sector and who don't mind being continuously second-guessed and criticised by the media, politicians and commentators generally.


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## Sophrosyne (31 May 2015)

Couldn't that be said of anyone who holds high office in the public sector?


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## Eithneangela (31 May 2015)

Brendan Burgess said:


> And who will work for a  lot less than they could earn in the private sector and who don't mind being continuously second-guessed and criticised by the media, politicians and commentators generally.


Judging by the excerpts I've heard of Mr. Neary at the Committee 'discussions' he would never have got, or been offered, a job in the private sector. Most of the discussion related to the office of the Regulator not having the required skills, resources, techniques, even Responsibilities to carry out the role which they thought they were responsible for. It was cringing listening, but should have been unsurprising. Fat Cat Retired High Office Public Sector Retirees - how do they suffer like the rest of us?


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## Agent 47 (31 May 2015)

"I can't recall" a more dire performance and I taped a lot of it, Mr Hurley was far more professional, one wonders why he would want to meet Neary for coffee on the 7th floor. He was probably best avoided. It was the behind the backs of his Head of Supervision and her staff that Neary met Drumm, Quinn and Co on many occasions, when asked if the meetings were recorded he indicated that perhaps they were. Either they were or they weren't!
He must have been a nightmare to work for. I thought his blame of Basel II as a resource sucking project a very lame excuse for not imposing administrative sanctions. It was put to him quite clearly by Messrs McGrath and Darcy that personal debt indicators from 1995 to 2008, concentration indicators and the consolidated view the Regulator had of all the banks returns were clear indicators upon which to act.
Words fail me, the position should be given to a non-national and for a term no longer than 5 years in order to ensure guys like Neary are never put in charge again.


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## Sophrosyne (1 Jun 2015)

Agent 47 said:


> Mr Hurley was far more professional, one wonders why he would want to meet Neary for coffee on the 7th floor. He was probably best avoided.



While Mr Hurley might have presented a more professional image than Mr Neary, he was equally ineffectual.


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## Purple (1 Jun 2015)

I don't understand why anyone is surprised by how bad there guys are. This is the standard across the board whether is be regulation, administration or management by the state and its agencies.


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## Sophrosyne (1 Jun 2015)

Purple said:


> This is the standard across the board whether is be regulation, administration or management by the state and its agencies.



That is not true.

I don't wish to tar everyone with the same brush.

There are many excellent highly skilled public servants discharging their functions on a daily basis without ostentation. Many are working within systems from hell.

In this particular instance, the issue was regulation and it is clear that there was, effectively, none. Warning signs were unnoticed, misunderstood or completely ignored. Responsibilities are being fudged. 

However, regulatory failure does not in any way excuse the actions of certain obscenely highly paid banking professionals, who despite their expertise - real or assumed - destroyed the entire banking sector.


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## Purple (2 Jun 2015)

Sophrosyne said:


> That is not true.
> 
> I don't wish to tar everyone with the same brush.
> 
> ...



If you are working in an inefficient system then you are inefficient. It doesn't matter how hard or well you work.
Tell me one area where the state operates which you can say is excellent and efficient?
I am not criticising individuals or implying that state employees are work-shy. The problem is bigger than that.


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## Sophrosyne (2 Jun 2015)

The issue here is about a _proven _instance of failure by a State agency.

You generalize by implying that this is typical not just of this but of each and every State Agency.

It is up to you to back up this all-encompassing statement.


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