The Irish Independent observes, [emphasis added]
When Alan Dukes speaks about the banking crisis, there is every reason to listen. Not only is he a distinguished economist; he is a former minister for finance and, most importantly, he is chairman of Anglo Irish Bank. He has seen that particular can of worms from the inside.
He said yesterday that there are more worms than in our worst nightmares. There could be a further €20bn to €40bn losses in the banking system, beyond those already covered, while €75bn in loans will be needed to fund a second NAMA for smaller loans.
... Whether the final figure is the official €45bn forecast, or Mr Dukes' gloomier estimate, all our futures are at stake. Yet not only do we not know what is going on, because of the disgraceful veil of secrecy surrounding the bank rescues, we do not know, among all the posturing and bickering, what the next government is actually going to do about it.
The possibility cannot be discounted given the fact that the Irish government has tried and claimed to have succeeded on at least a couple of occasions to identify all the 'bad assets' in the banking system and consolidate them in NAMA.
The difference in quality of information would also be consistent with what the Financial Crisis Inquiry Commission found in the US as shown on page 308 of its report,
Douglas Roeder, the OCC’s senior deputy comptroller for Large Bank Supervision from 2001 to 2010, said that the regulators were hampered by inadequate information from the banks but acknowledged that regulators did not do a good job of intervening at key points in the run-up to the crisis.
The bottom line: with current asset-level data, everyone would then have the same data and would know what is going on.