Brian Lenihan wanted to take Anglo Irish Bank into public ownership before the bank guarantee was introduced.
However, the former finance minister was overruled by others who refused to nationalise the bank, with a view to shutting it down.
That's according to the governor of the Central Bank, Patrick Honohan, who's giving evidence to the Oireachtas Banking Inquiry.
He told Fine Gael senator Michael D'Arcy he won't name the people who overruled him:
He also told the Inquiry that guaranteeing all bank bondholders was a mistake.
The inquiry will also examine the role of a Domestic Standing Group, which was put in place by the Government at the time.
This morning, political editor Shane Coleman spoke to Pat Kenny to fill him in on what Honohan has told the inquiry so far, including what he thought of the famous "guarantee".
Chairman of the Banking Inquiry Ciaran Lynch TD, says serious questions will be asked about this group:
Professor of Finance at Trinity College in Dublin Brian Lucey, says the inquiry needs to grill Mr Honohan on what the European Central Bank knew during that time.
Speaking to Newstalk Breakfast this morning however, he stated that he doesn't think Mr Honohan will answer:
