The former chief executive of AIB says he recommended nationalising Anglo on the night of the bank guarantee.

Eugene Sheehy says Anglo was set to default and should have been nationalised, along with Irish Nationwide.

He's also insisted that AIB was solvent on the night of the guarantee - and that Brian Lenihan asked him to consider taking over Anglo entirely.

He says the idea was given reasonable consideration, but dismissed - commenting that the bank had put a great risk to its own health by agreeing to offer €5 billion in emergency liquidity to Anglo for five days.

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