Gormley: Bankers hid insolvency issue in run-up to guarantee
The former leader of the Green party John Gormley says it is his firm belief that some bankers hid the fact they were insolvent from the Government in the run-up to the bank guarantee.
Meanwhile, former PD leader Mary Harney says that within days of the guarantee Brian Lenihan told her he was concerned if bankers had told him the truth.
Mr Gormley told the Banking Inquiry the Greens accepted responsibility for the two thirds of the austerity imposed on the Irish people while they were in Government.
However, he inisted the austerity was "fair and progressive", hitting those who could afford to pay the most hardest.
On the bank guarantee he says he was convinced at the time it was a liquidity issue rather than a solvency one, accusing some bankers of hiding the real situation.
Mr Gormley said: "I do believe that there were individuals that must have known in the banks that there was a problem.
"That's my view. Do I have evidence for that? I don't."
Former PD leader Mary Harney also revealed to the inquiry that within days Brian Lenihan was worried the banks had lied to him.
She said: "He relayed to me that he just worried was he being told the truth.
"It wasn't that night, it wasn't that week, but it was probably shortly thereafter."
Meanwhile John Gormley has called on the inquiry to call his successor as Green leader Eamon Ryan, saying Mr Ryan dealt with banking issues when the party was in Government.
