Cowen insists any wrongdoing in banks will be investigated

Taoiseach Brian Cowen has insisted that any financial wrongdoings in Irish banks will be fully investigated and rejected suggestions by the Opposition that the Government is motivated by anything other than the public good.

Speaking during Leaders Questions in the Dáil this morning, Mr Cowen insisted that he has full confidence in an investigation being carried out by the Director of Corporate Enforcement into dealings in Anglo Irish Bank. Another inquiry is also being carried out by the Financial Regulator.

Labour Party leader Eamon Gilmore accused the Government of being “soft on corporate crime”. He said he found it “difficult to understand how laws were not broken” by Anglo Irish directors and demanded to know what action the Government intended to take if wrongdoing was uncovered.

Mr Gilmore said the Financial Regulator is “a joke” in the present circumstances as it “couldn’t spot what was going on” despite receiving regular reports about financial dealings within Anglo Irish Bank. He questioned why the Director of Corporate Enforcement has not applied for the appointment of a High Court inspector and why no Garda investigation has begun.

Mr Cowen rejected Mr Gilmore’s claims, insisting the “rigours of the law” would be applied once the Director of Corporate Enforcement submits his findings.

“The House can take it that any significant corporate governance issue that comes to light will be investigated by the appropriate authorities,” Mr Cowen said.

Fine Gael leader Enda Kenny earlier accused the Government of "dancing to the tune of developers and big bankers".

Mr Cowen denied the claim. "I reject with the contempt that it deserves the continuing suggestion that we are motivated by anything other than the public good," Mr Cowen said.

He accused Mr Kenny of "taking the high ground" and attacked the Opposition for "cat-calling and heckling before I've even opened my mouth".

Mr Kenny called on the Government to ensure that banks maintain credit lines to small businesses to ensure that they stay afloat and jobs can be saved.

The Taoiseach said the banking system was a top priority for Government and confidence in the sector had to be restored.

On mortgages, Mr Cowen said fewer Irish mortgages are under stress than in the UK and just 127 repossession orders were recorded in Ireland up to June last year. "Whilst this is a problem which has the potential to increase, it is important not to exaggerated at this point," he said. "Obviously the second six months of last year will see further developments in that regard."