I propose to take Questions Nos. 80 and 81 together.
To answer the Deputy's questions would necessitate an ability to identify those holders of securities guaranteed by the Irish Government, who were financial institutions with recourse to the German sovereign for support.
I refer the Deputy to my previous reply on 13 November 2012 which outlined the difficulties in establishing the identity bondholders in such a circumstance.
With respect to any independent estimates of such a situation, I do not consider that such estimates could be reliable, given the difficulties that those who have prepared those estimates would similarly have in establishing the identity of bondholders.
I confirm again that neither the banks nor the Government have an accurate means of establishing the underlying ownership of securities issued by the banks under the ELG as of a particular point in time. As these securities are freely tradable once issued it is not possible to trace their ultimate ownership. These securities are traded and dealt through market participants and settled by clearing house systems. An issuer does not have any access to the records of the clearing house. At maturity, the Bank will instruct its paying agent to transfer the funds due to the clearing house who will then distribute the funds to the holders of the securities as per their records. Even where the bank is presented with lists alleging to represent names of bondholders I am informed there is no way for the bank or anyone else to completely verify the accuracy of such lists..
