Taoiseach Brian Cowen came under pressure again during Leaders’ Questions in the Dáil this morning to name the 10 people who were given €300 million in loans by Anglo Irish Bank to support its share price last year.
Fine Gael leader Enda Kenny insisted the Government knew about the loans before the bank was nationalised and demanded to know who had made the decision not to pursue members of the so-called "Golden Circle" for the €75 million owed to the taxpayer.
The 10 investors offered €75 million in security for the loans worth €300 million advanced to them by the bank.
“Who in heaven’s name made the decision not to pursue these ten people for the €75 milion owed to the Irish taxpayer? For the sake of €100 million you forced older people to march on the Dáil over the withdrawal of their medical card. Ordinary people are being charged 22 per cent on their overdrafts by these same banks,” he said.
“There is a chasm of anger out there.”
Mr Cowen accused Mr Kenny of capitalising on difficulties in the financial system for his own political gain. He claimed he was engaged in "juvenlile conspiracy".
“I don’t know the identity of these people. It is under investigation by the Director of Corporate Enforcement and the regulator. It’s the same way I can’t walk into Fitzgibbon Street Garda station and ask the sergeant on duty to name suspects currently held by them. It’s a matter for the statutory authorities,” he said.
Mr Cowen said the law affected everybody equally “with no fear or favour”.
“If the regulator says the fraud squad needs to be involved so be it,” he said.
He said debts owed to Anglo Irish Bank would be pursued. “Cabinet has not made a decision not to pursue people. We will pursue debts and liabilities. That’s why we nationalised the bank. So that we retrieve debts owed to it as far as it is possible.”
Labour leader Eamon Gilmore echoed Mr Kenny's call for the 10 people to be named.
“Because told we must be. The people now own this bank. These people who gambled €300 million recklessly must be named,” he said.
Mr Gilmore also demanded to know the identity of people who had lobbied Mr Cowen in March 2006 to reverse a decision by Revenue that stamp duty should be paid on shares bought to underpin Contracts for Difference (CFDs).
He said the reversal of that decision allowed reckless trading to continue without tax liability and caused the instability at Anglo Irish Bank. Sean Quinn accumulated up to 25 per cent of the bank through the CFD mechanism.
"You were warned about this. John McManus of The Irish Timeswrote a prescient piece on April 3rd, 2006 saying the fact that between 20 and 50 per cent of the trades done in Dublin are done via CFDs should set alarm bells ringing in Merrion Street," he said.
Mr Cowen said he reversed Revenue’s decision to tax CFDs “on official advice”.
“I will get the full explanation for you from the Department of Finance. The financial crisis is not down to CFD trading. Anglo’s business model is to blame for the difficulties at the bank. It was too reliant on the construction sector,” he said.
Mr Cowen admitted the Quinn shareholding via the CFD mechanism “was a concern” but dismissed the idea that it had caused the crisis as an “exaggeration”.