‘was the most destructive own goal in history that sunk an entire nation’

[barryqwalsh]

AN EXPERT IN bank fraud has said the Irish bank guarantee was “the most destructive own goal in history”.

Professor William Black, from the University of Missouri-Kansas City, said that the lack of “reliable facts” from regulators and banks in the lead up to the 30 September 2008 resulted in a blanket guarantee being issued.

The inquiry also heard the European Commission’s Mario Nava this afternoon.

Earlier, responding to questions from Fine Gael’s John Paul-Phelan, Black said he could not understand the decision to guarantee subordinated debt (junior bondholders), saying later that “you would never ever bailout subordinated debt”.

Black said the guarantee decision turned a banking crisis into a fiscal crisis “that was clearly gonna crush Ireland”. In soccer parlance, he said, this was “the most destructive own goal in history”.

• Read: An Oral History of the Bank Guarantee >

The bank guarantee 8216 was the most destructive own goal in history that sunk an entire nation 8217