The decision to introduce the Guarantee provided by the Credit Institutions (Financial Support) Act 2008 was taken after a prolonged and unfolding period of turmoil in financial markets characterised by deteriorating availability and cost of liquidity, which accelerated rapidly in the late summer and early autumn 2008. Throughout this period, and particularly in the weeks and months preceding the decision to introduce the Guarantee, the Financial Regulator had engaged in intensive liaison and monitoring with Irish credit institutions.
I consulted throughout this period with the Financial Regulator and the Governor of the Central Bank and had available to me the advice of my officials, the National Treasury Management Agency and independent legal and financial expertise. These discussions and consultations were ongoing and intensified in the period following the virtual freezing of credit markets in September. As has been widely reported in the media, I also met with the Chief Executives of the two largest domestic banks on the night of Monday September, 29th. As the Deputy would expect during a period of difficult conditions I and my officials engaged in discussions with a wide range of institutions in the period before and after the guarantee.
I dealt with this matter at some length in my Second Stage speeches to Dáil and Seanad on the Credit Institutions (Financial Support) Bill, setting out the background to and the Government's decision to act to underpin the financial standing of Irish credit institutions.