TAOISEACH BRIAN Cowen said his threat of legal action against Sinn Féin Dáil leader Caoimhghín Ó Caoláin about contacts with senior Anglo Irish Bank executives was because, “I was asking what I am supposed to be guilty of as a result of all of this or what I am supposed to do about it”.

Mr Cowen said his contacts with the bank’s senior executives were an “innocent engagement” and described Mr Ó Caoláin’s questions as the “old LBJ stuff, namely accuse him and let us hear him deny it. That is the game the deputy is at.” He was referring to former US president Lyndon B Johnson, who some claim believed in making allegations simply to have them denied.

Mr Ó Caoláin raised the issue again yesterday and asked “is Mr Drumm lying or is it that the Taoiseach cannot recall all of the details or is it something else?”

Mr Cowen insisted he had been fulfilling a long-standing engagement in attending a dinner and it was an “innocent engagement”.

The Sinn Féin TD asked “how appropriate was it that a director of the Central Bank, appointed by the Taoiseach, would be engaged in debate on matters fiscal and economic, job creation and budgetary issues with three, either then or previous, senior directors of Anglo Irish Bank?

Mr Ó Caoláin asked “what is the situation on the Taoiseach’s dinner with the board of Anglo Irish Bank in April 2008 and Mr David Drumm’s claim that he spent at least an hour briefing the Taoiseach on the issues in regard to Anglo Irish Bank?”

Mr Cowen replied : “It is not an abuse of privilege for the deputy to ask the questions he is asking, but when I suggested to him that he speak outside of the House it was if the deputy had anything to say about that, which might be libellous or have the potential to do down my good name and character.

“I would rather that was done outside and then I would take legal advice on it.

“However, the deputy has not made that case.

“You’ve simply created this picture and that’s what you’re at.”