Monday, April 18, 2011

Previewing the Banking Inquiry Report

If the Irish Times is correct in its reporting about what's in the Nyberg report into the causes of the financial crisis, the inquiry might well have been a waste of time. According to the newspaper, the "report is expected to criticise the “herd mentality” that prevailed in banking and among the regulatory authorities, where there was a strong culture of consensus and where any challenge to this was strongly discouraged.
The investigation is understood to have severely criticised the lack of governance in banks (especially Irish Nationwide Building Society), serious systemic failures and shortcomings in the Central Bank and in the former financial regulator’s office, as well as in the Department of Finance."

Did we need another inquiry to tell us that? A survey of the newspapers here over the last few years would have said as much.

This is exactly why I repeatedly emphasized the need for someone with a prosecutorial background to lead the inquiry. In any case, I'll reserve more comment until a full reading of the report.