THE STATE is handing over "the deeds of the country" to six bank chief executives who between them earn €13 million a year, Labour leader Éamon Gilmore has claimed in the Dáil.
Taoiseach Brian Cowen, however, insisted: "I have not handed over money to any bank. I have provided the reputation of this State to those banks in a position whereby they can gain access to funds to continue in a stable financial system so the economic and financial life of this country can continue."
In a passionate defence of the Government's unprecedented move to guarantee the deposits and debts of six financial bodies, Mr Cowen said the greatest risk to the stability of the financial system was "the risk of doing nothing".
He added: "I had to make that decision. It was made clear to me that this was what was required."
During leaders' questions, Mr Gilmore said the banking crisis meant that a "decade of corporate greed" had "come home to roost".
He could see what was in it for the banks and shareholders. "I can see what's in it for six chief executives of the six banks between them earning €13 million a year," Mr Gilmore added.
"If you're proposing to hand over the deeds of the country to bail out the banks what are we getting in return?" he wanted to know. What were the "nuts and bolts" of the deal, he asked. He was concerned that the guarantee was "just as likely to embolden the banks to take even greater risks".
He claimed the Government "could have bought a 50 per cent stake in the entire banks in this country for €5 billion. Instead you've given them a guarantee for almost €500 billion."
"The taking of equity completely misses the points," Mr Cowen insisted. "The taking of equity would not provide the liquidity necessary to maintain a stable financial system in this country in the short, medium or long-term."
He added: "The shareholders will be the first to have a problem in the event of there being a problem with any bank.
"The commitment I am giving, that if a deficit emerged, the sector would pay - not the taxpayer.
"That is my commitment to the House,"he said.