Watch: 'Nobody knew' extent of banking crisis, says Cowen

Former Irish Taoiseach Brian Cowen stated in an RTE Fóram interview that his government was unaware of the full extent of the Anglo Irish Bank’s financial crisis when they introduced the bank guarantee in September 2008. The true severity of the crisis was not realized until the following January, as the new management discovered the extent of the damage in the banking sector.

The global financial crisis of 2008 was marked by liquidity shortages worldwide, causing banks to fear running out of cash to operate daily. Cowen emphasized that there was no certainty that banks would have sufficient funds to pay their employees, not just at the end of a week but over the subsequent weeks. He also clarified that Ireland's sovereignty was not compromised during the Troika bailout in November 2010, as the European Commission, European Central Bank, and IMF provided financial assistance under agreed conditions.

Cowen stated that while the Troika required weekly updates, they did not control the government's daily decisions. Following the 2011 General Election, Fianna Fáil suffered a significant defeat, losing more than two-thirds of its TDs. Cowen resigned as Taoiseach and expressed disappointment about the election outcome, feeling responsible for the result.

He described feeling low for several months after leaving politics, finding it difficult to resume a normal life. Cowen hopes to be remembered as someone who always prioritized Ireland's best interest, contrasting Ireland's approach to the European authorities with other countries like Greece.