Brian Cowen has defended the decision to go with the bank guarantee in September 2008 saying he had to pick the "least worst option".

But he's denied over-ruling Brian Lenihan on the night of the guarantee, when it came to the question of nationalising Anglo.

The former Taoiseach is spending a second day giving evidence at the Banking Inquiry - where he says the conversations between himself and Lenihan were not adversarial.

He has also spoken out against anonymous briefings which suggested Ireland was already entering a bailout programme, when he insists no such decision had been made - and that Ireland was still trying to decide on its best option.

Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News: