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Updated 7.35pm
BRIAN COWEN MADE the first of two long-awaited appearances before the banking inquiry today to discuss his role as Minister for Finance between 2004 and 2008.
The former taoiseach was bullish throughout and provided a robust defence of his record in office and the policies pursued by the Fianna Fáil government.
Cowen spent several hours answering questions from TDs and Senators in Committee Room 1 of Leinster House and here’s what we learned…
1. He’s sorry
Like many before him – but unlike Charlie McCreevy yesterday – Cowen began his evidence with an apology, saying he was sorry for the hardship caused by the economic downturn and the role he played in it.
I accept full and complete responsibility for our role in, and response to, that crisis.
Towards the end of his evidence he apologised again, and added:
Our motive and purpose at all times was to see an ambitious improvement for people and when something like this hits you have to change course… I did my duty as best I could.
2. But he did a good job
When asked directly if he thought he was successful in his role as Minister for Finance, Cowen’s answer was ultimately a Yes. He said that, in hindsight, he would have made some decisions differently, but defended the spending increases he introduced.
He said he had enough experience to take on the role, given his experience in other departments, but admitted:
I’m not a qualified accountant, which probably is helpful.
Cowen noted that the Fianna Fáil-led government he was part of recorded budget surpluses in ten of eleven budgets up to the time he left office as finance minister.
He said it is unfair for people to now denounce spending increases, as others would have done the same given the money that was available.
I stand over my decisions. How long would we wait to give an old age pensioner a few more bob?
In hindsight, there are lessons to be learned … We are all very wise in hindsight. We all seem to have 20/20 vision.
3. A rock and a hard place
Cowen said the government was left “in no doubt” that burning bondholders would have meant no funding from the Troika, stating: “It was one or the other” and “we were on our own.”
In terms of the bank guarantee, which will be explored at length next week, he said it was a case of taking the least worst option available. Cowen said a wrong move could have set Ireland back 25 years.
4. The Galway Races Tent wasn’t a big deal
When Socialist TD Joe Higgins raised the issue of Fianna Fáil’s infamous hospitality tent at the Galway Races, Cowen said some people viewed the tent as a cover for “collusion”, but this wasn’t the case.
There was no big deal … You couldn’t pick a winner in the Galway Races tent, never mind anything else.
Cowen was combative, telling Higgins:
You’re setting me up as some sort of guy who is promoting cowboy speculators … I’m not. I don’t travel in those circles.
Not everyone agreed with this summation, however:
5. But what about dinner at Anglo?
In the afternoon session, Cowen was asked about attending a private dinner at Anglo Irish Bank’s HQ on 24 April 2008. Cowen said the dinner was informal and came about as a result of his impending departure from the Department of Finance (to become Taoiseach).
He said it was the one and only time he would have met then-Anglo CEO David Drumm and said then-Anglo chair Seán Fitzpatrick – who he had met three or four times previously – was also there.
Cowen said he took no notes or documents and said that the pressures facing the bank were not discussed at the informal dinner, even in the wake of the sharp drop in its share price in the weeks before that. There was no discussion about a possible guarantee for the bank.
Sinn Féin’s Pearse Doherty asked would this not have been a unique opportunity to seek information on the bank. But Cowen said that while one Anglo executive – whose name he couldn’t recall – made general remarks about Anglo it was otherwise all very informal.
It was a very much a social occasion. It wasn’t a business meeting and if it was a business meeting it would have been held in the Department of Finance.
6. Morgan Kelly got it right
Cowen admitted that UCD professor Morgan Kelly’s predictions about the property market were correct. Here’s what he had to say about the 2007 report that was essentially ignored at the time:
In an interview on publication of the review, ESRI economist, Dr Alan Barrett made it clear that the ESRI did not share Professor Kelly’s prognosis that house prices in Ireland over the following 8 years could drop between 40% and 60% in value.
“Whilst the ESRI thought that house prices were overvalued by 15%-20%, it did not believe there was going to be a sharp fall in house prices. It was forecasting a house price decrease of 3% for 2007 with it stabilising the following year.
He said that the think tank’s economic growth forecasts for 2007 and 2008 were consistent with stability in the housing market. But Cowen admitted they were wrong and Kelly was, in fact, on the money.
He later said he could not recall a specific document outlining the infamous ‘soft landing’ assessment of the economy. During the evening session, Cowen spoke at length about contrarian views and said there need to be more of a culture of them being encouraged the public service. He later said:
I regret that I wasn’t more doubting.
7. He doesn’t like being interrupted
One of the most robust exchanges of the day came when Cowen shut down lead questioner Kieran O’Donnell, repeatedly telling the Fine Gael TD: “Let me finish”.
At one point, when asked if he felt sympathy for those who suffered in the crash, Cowen pointedly told him
You have no monopoly on upset deputy, or those in distress.
It didn’t end there. At one stage he told O’Donnell: “Let me answer the question – it took you five minutes to ask it.”
It was indicative of the sort of bullishness Cowen was famous for in the Dáil when he was coming under pressure at Leaders’ Questions. Towards the end of the day-long session he was clearly flagging from the intense questioning.
8. His friends are “mundane”
Cowen denied being close friends with property developers and bankers, saying: “My acquaintances and close friends are quite mundane, not well-known.”
In response, Labour Senator Susan O’Keeffe asked him about the “frequent” visits of entrepreneur Fintan Drury to his office while in government. He said they have been friends for nearly 20 years and didn’t discuss banking during those conversations.
9. He likes to gesticulate
A lot.
Cowen is due back before the committee next Wednesday to give evidence in relation to his time as Taoiseach from 2008 to 2011.
- with reporting from Hugh O’Connell
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The big Accountancy firms are more to blame for the calamity that ensued.
Cowen, like many others were lead to believe one thing with the published accounts while a very different story was the case. He paid millions for advice from these so called “experts” who lead him directly up the path & over the cliff.
Exactly my thoughts. Cowan may not be a qualified accountant but plenty around him were.
Whose agenda were the accountancy firms working to, is the question.
Consultants get paid to tell you what you want to hear and already know, if you don’t like what you’re told you tell them to go to a dark room with a bottle of whiskey and a gun
Every bank in Ireland executed a charge a floating charge over the monies in their account with the central bank of Ireland – the fund to enable central bank to honour the transfer made by those bank to other bank in the euro zone – why cos the central bank not confident in the solvency of the banks. if Government did not know of that state of affair – it id of court – for them bank held government bonds as securities. The government took RISK and gambled but I believe mainly the government FF / Greens was bullied and bullied badly by the IMF and to this date the Governments ( MINISTERS ) has still not released gag from the independent role of the DAIL to protect the public fund and exercise it power under the as the institution require to approve the term of that loan under art 29 5 2. and have dail to fall back on in it negotiation in this huge No TD has challenged the opinion that and Cowen Government and current governments that that loan is not an agreement under art 29 5 2. and we all know the loss made and suffered to public purse from the liquidation for the huge loan burdening nation states. but it is D Obrien who is now suing the Oireachtas – nothing has changed . The TD are like lapdogs .
the book never seem to stop anywhere in this county and u don’t need to be any expert to know that property price were rising too fast far too fast, and bank engaging in reckless borrowing to satisfy this insatiable demand . The politician just did not want to ASK questions . And still don’t . I don’t see the point or at all of these inquiries – into past damage EFFECT STILL ON US – and today we have one D O; Brien suing Oireachtas – dail gagged from inquiring into any more losses in IBRC and accountant making millions , While Greece may well be on way to getting better deals at heart of the problem – Frankfurt,. D Obrien has a claim a very valid claim – minister had told dail these term did not come under art 29 5 2 and none of them asked high court o/wise .
Yes & what political party were those firms affiliated to. Cowen is a clown. & typical FFer. He exercised no control over the Banks while he had the power to do so. Of course he & his so called Regulator were being wined & dined by them. Sickening.
@ Peter, thats how much he cared, we should give him an Oscar for his performance at the inquiry.
Its hard to get rid of Skum but we must, if we want an Ireland we can be proud of.
@Von. I disagree re Oscar – The best has yet to come – nxt wk I believe – Mr B Ahearne, The King of Absolute & Total Bullshit will b making an appearance. Waffling away, putting on his sad sincere facade while laughing all the way to the Bank or should that be Bookie.
The man is also grateful to DOB for giving him a well paid job as he was struggling to survive on his pensions.
Biffo the legend… Banking inquiry ? It’s sheer entertainment & I can’t wait for Ahern, kenny & noonan to start spinning, It’s a Party Political soap opera & we are the mugs paying for it. Nothing to do with accountability, its the start of campaigning for general election.
Don’t start me off.
Most thick Tea-shock we ever had.
Cowen must be the ugliest person ever to appear on a soap opera.
@Cram I think he could be beaten to the post on that one by Enda… Or else it’s a tie
Gail Platt JM?
Still he performed “to the best of his ABILITY” – and therein lies the problem. The complete lack of ABILITY of Cowen and his cohorts is astounding given the salaries and pensions they “earn”. Couldn’t run your local grocery store.
Will he give up his 151.000 euro annual pension? ,,He would not run a Topaz station…https://youtu.be/HtOzdj5gRSc
And on that night who indeed was in charge of the ‘clattering train’ . . .
Well we know who was restricting the options – The European Cartel
If people see this “inquiry” as anything other than the FG/Lab government trying to score points to cover their horrendous record and plain ineptitude while in power themselves, then you’re all in a world of delusion. Nothing will come of this at all. What is done is done, and some of the questions (that seem to be more statements and rants rather than questions) have nothing to do with anything.
Yes the quality of questions were quite poor and unfortunately some were not even questions leading to many interruptions by the Chair to clarify. Cowen whatever people may think of him portrayed himself very well today and very professionally IMO.
As much as I don’t like cowen, his FF chums and their ridiculous guaranteed pensions this banking inquiry isn’t worth a pot of piss. It’s all about political points scoring, any FG/Lab/SF TD who claims that they wouldn’t have gone with the same sort of spending with the budget surplus’ that were there at the time is talking through their arse. Current Gov are all about talking up potential tax cuts and spending increases now that an election is looming while conveniently leaving out the fact that we are still saddled with a massive National Debt that will still have to be re paid by future generations. Funny how the pension reserve was gutted to set up the likes of IW yet TDs multiple fat pensions are still guaranteed to be paid from the public purse
If this Japan was he’d fall on his sword.
Or at least hit himself with his calculator.
Cowan and Ahern financed a government spending boom on excessive property stamp duties, huge VRT receipts and ever growing VAT income. Any leaving cert student could have told them that you cannot fund long term spending plans on transaction taxes.
Any Irish electorate, however, seemingly thought that you could do so.
Why did he think it sensible, in budget 2007, to pump an extra 12% cash into what was already the fastest growing economy in Europe and one the fastest in the developed world? How did he think that would play out?
He didn’t dare FF had a election coming up and that is all that mattered.
He still doesn’t care, he walks away a well to do man, FF’s key friends have been looked after.
The country can take a running jump.
A bit like Horatio Nelson at the Battle of Copenhagen in 1801, Capn’ Cowan had the telescope up to his bad eye on the good ship Celtic Tiger not wanting to observe nor heed the clear signals of impending doom.
John he is the man that led FF into the greatest calamity in their history, his ego must have taken a serious knock.
Bertie actually did that
He should be in jail for what he did to the Irish economy
For being democratically elected and acting to the best of his ability?
How fickle people are , FF are up in the last polls , a week is along time in politics
He has a much better knowledge of economics than I had previously given him credit for.
Most of the inquiry’s members are asking very narrow questions in an attempt to score points–it’s not unsuprising that he push back at that. Finally, and much more seriously, they persistently put Prof Kelly’s warnings to witnesses without quoting the great numbers of cheerleaders at the time.
I’m no fan of FF or Cowen, but he’s an articulate spontaneous genius, compared to Kenny,
“The former Taoiseach came out swinging this morning and is continuing his evidence this afternoon.”
….for a moment there I thought it said he came out ‘swigging’….which would have made more sense.
This investigation with the backdrop of Greek default is a disaster for the FG masterminds that dreamed it up, It highlights the fact that we had no choice but to bail out banks if we wanted to see a future in Europe. Building and economy on short-term gains on stamp duty and capitol gains however was unforgivable folly.
I watched 10 minutes and I don’t believe a word of what that man says….still smug and feels he’s done nothing wrong. Psychopath
gob5hite now give your pension back.
He’s happy as his decisions had to effect on him and the rest of the gang. For the mere citizens of Ireland however it’s a much different tale.
Who are these ESRI and what level of control have they to ignore reports that were proven correct?! Yet again we all point fingers at politicians, either in power or opposition, the problem yet again ‘lies’ with the banks and possible collusion between them and high powered officials, at the end of the day TD’s and governments change, banks and their officials see them come and go, who has the power then?!!!
Worth every penny of his pension, at least we get it back in excise duty I guess
” We recorded budget surpluses in 10 of 11 Budgets up to the time I left office as finance minister” if this buffoon is incapable of reconciling the excess incomes with the inevitable economic destruction of our county then we were truly shafted. What a reprehensible and arrogant comment to make.
Actually its Eleven things we learnt about Cowan……….9. He is still alive. 10. He is still receiving a massive pension paid for by Irish people,many who cant afford it!
We’ve learned that he hasn’t changed much, still as brutish as ever!
the rest of the country’s ‘economists’ continue to appease their estate agent, mortgage lender or stockbroker employers with their sales patter.
There should be some sort of regulatory health warning on economists who are commercial shills. perhaps to be banned by advertising standards to call themselves economists.
Still if Cowen or Martin wandered across the forecourt trying to sell me a used car, I’d trust Cowen before Martin.
Martin is just too slippery sleek for my liking. He makes Gerry Adams look trustworthy.
Some just have that survival instinct I guess.
At least he was sober today
Does anyone remember Spittin’ Image? Every time I see a picture of cowen…..
One thing we have learned nobody in high office in Ireland is accountable for anything…. Ever!!! Sham
He now works for Denis Obrien right??
As my father would say he has a face like a dogs arse
For 8 to exist, then you added Snow White as one of them lol.
“I accept full and complete responsibility for our role in, and response to, that crisis.”
Brian Cowen
But what does that mean?
Will he give up his big pension to demonstrate how he is willing to sacrifice in some way?
I wouldn’t mind having an opportunity to gesticulate in front of him… and it wouldn’t be a peace ✌ sign
Didn’t he once say when interviewed about, and during, the property boom “if people want to buy houses they should be allowed do so “……or words to that effect
The only thing we will find out is that he’s as good a liar as I always knew he was
He should be called Gotti, same arrogance and same modus operandi. Untouchable and smug as hell. How many SSIA’S did his friends and relatives have under Irish names, maiden names both in Irish and English ? All financed by his pal Seanie. Lucky if you are born into this Madia family.
Wow, why don’t you make some more baseless accusations?
Perhaps they roasted children’s heads over burning €100 notes?
Do you have any proof that this is the case?
If you do, I’d advise you to bring your information to the Gardai.
The best thing about having Joe Higgins in the room is that no matter how badly you’ve fluced up or how incompetent you’ve been you can look up and remember that you’re still a better option than Joe.
Traitors all of them, there is not one Irish patriot in the Dáil, not one. If you do not have the spine to know what is best for your country, to tell advisors to fk off, to tell Chosen bankers to fk off and print your own money, then you are undeserving to represent any nation of people. According to these people the Irish can go fk themselves, they’ll open the country to foreigners both Chosen bankers and immigrants, and clamp down hard on Irish people, and you know what, they’ll take it. All who opened up our country to bondholders, chosen bankers and immigration have blood on their hands.
Fat useless oompa loompa clown. …
Clara has let its village idiot out again ..https://youtu.be/HtOzdj5gRSc
Some FF supporters here, they must have forgotton to lock the secure ward agsin…
ugly inside and out horrible man
he looks very hitler-ish in the last photo
As ugly and arrogant as ever, stay classy Brian!
Is number 9 a go at him for being a bit of a nazi? Gesticulating. What a word.
Brian Clowen says he is ‘Happy’ with the decisions he made. Sure if he is happy sure its alright then, everyone of us should be happy… I doesn’t matter that he and his FF cronies bankrupted the country, saddled us with debts for generations, sure its alright he is HAPPY that the wonderful USC that he and FF brought in will be with us for generations. Clowens…..
I am so happy Cowen is sorry ( in Fr Jacks voice) but a lot of good sorry is doing the Country, we paid a high price for his SORRY, half the time he was drunk, why do people vote for such incompetent idiots, and now we have to suffer his brother, God help us but i ask the people of Sligo to vote independents that way we will rid the Country of the cute hureism that is rife in FF FG Lab FG.
glad he was able to take time away from his studies to help us out.
glad he could find time to help us out.
I am sick to my eye teeth of this repeat performance by so many” I’m sorry it happened blah blah blah” put your money where your big friggin mouth is and hand back your pension so ya tosspot
Glad he could take time away from his studies to help us all out.
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