The Government announced the establishment of an investigation into the banking crisis on 19 January 2010. This investigation will have two stages. For the first stage, the Government has commissioned two separate preliminary reports:
One report is being prepared by Professor Patrick Honohan, Governor of the Central Bank and Financial Services Authority of Ireland, on the performance of the functions of the Central Bank and the Financial Regulator over the period from the establishment of the Financial Regulator to the end of September 2008.
A second report is being prepared by Mr Klaus Regling and Mr Max Watson, who have been asked to conduct a preliminary investigation into the recent crisis in the banking system to assess what lessons can be learned to inform the future management and regulation of the sector.
I expect that both preliminary reports will be completed and submitted to me on schedule by the end of May 2010. I will then seek Government approval to lay both reports before the Houses of the Oireachtas. The second stage of the investigation envisages the establishment, following approval by both Houses of the Oireachtas, of a Statutory Commission of Investigation, pursuant to the Commissions of Investigation Act 2004. The terms of reference for the Commission of Investigation will be informed by the two preliminary reports.