John Hurley, Governor of the Central Bank (2002-09) this morning

Meanwhile, at the banking inquiry:

” “The reports []rom the Nyberg Commission and Regling and Watson] suggested that there was a basis for taking some action by about the end of 2005.

In hindsight I agree with this view and I consider now that the Central Bank should have escalated and reinforced its warnings on risks. However, at the time the Bank considered that its approach in the 2005 Financial Stability Report was the correct one.”

Mr [John] Hurley said the Minister for Finance was never told about the crisis in the banking system because nobody knew it was coming. But he did say Brian Lenihan was told there was “a lot of heat in the property market, a lot of houses were being built and there was a lot of risk associated with that”.

The Governor said he had a direct responsibility to the Government and to the ECB. He said there is a domestic responsibility here that had to be exercised in a certain way. Mr Hurley said it was his position to make decisions in the interest of Europe as a whole but to always make Ireland’s position clear.

Seems legit.

Banking inquiry: ECB ‘told Ireland’ to stand with failing banks (Irish Times)

(Leah Farrell/Photocall ireland)