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16/01/2009
Anglo Irish Bank Nationalised
Just weeks after a top Irish bank was plunged into controversy over an alleged secret loans scandal - which lead to the Anglo Irish bank losing its top executives - the financial institution has been nationalised.
In December the bank's Chairman resigned after a €87m loan controversy and the Chief Executive announced his resignation shortly afterwards.
Now, the Government has confirmed that it to nationalise the Anglo Irish Bank amid continuing its funding problems.
The state had already planned on pumping over one €billion into the bank, but has now decided that recapitalisation is not the way to secure its future.
With some €100bn of value 'on its books', all employees will stay with the firm and shareholder rights be protected.
The bank's Board said it would work with the Government to ensure its long-term commercial viability.
In addition, the Irish Government guarantees 100% of Irish and UK depositors money in its banks, so even if an Irish bank collapses, customers will get their money back.
Ministers had been due to hand over the €1.5bn 'bail-out' in return for 75% shares with an annual fixed dividend being paid to the government of 10%.
Now - in the current circumstances the State is the only available potential owner.
"The decision safeguards the interest of the depositors of Anglo, and the stability of the economy, given the significance of Anglo in this regard, as already recognised by the European Commission," said Finance Minister Brian Lenihan - pictured here.
"The bank will continue to operate as normal and depositors and creditors should continue to transact as normal."
(BMcC/JM)
In December the bank's Chairman resigned after a €87m loan controversy and the Chief Executive announced his resignation shortly afterwards.
Now, the Government has confirmed that it to nationalise the Anglo Irish Bank amid continuing its funding problems.
The state had already planned on pumping over one €billion into the bank, but has now decided that recapitalisation is not the way to secure its future.
With some €100bn of value 'on its books', all employees will stay with the firm and shareholder rights be protected.
The bank's Board said it would work with the Government to ensure its long-term commercial viability.
In addition, the Irish Government guarantees 100% of Irish and UK depositors money in its banks, so even if an Irish bank collapses, customers will get their money back.
Ministers had been due to hand over the €1.5bn 'bail-out' in return for 75% shares with an annual fixed dividend being paid to the government of 10%.
Now - in the current circumstances the State is the only available potential owner.
"The decision safeguards the interest of the depositors of Anglo, and the stability of the economy, given the significance of Anglo in this regard, as already recognised by the European Commission," said Finance Minister Brian Lenihan - pictured here.
"The bank will continue to operate as normal and depositors and creditors should continue to transact as normal."
(BMcC/JM)
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Ireland WeatherToday:A mostly cloudy day with outbreaks of rain, most persistent and occasionally heavy across southern and western counties this afternoon. Risk of low cloud and fog patches affecting the Down coast. Light winds. Maximum temperature 15 °C.Tonight:Continuing cloudy through the evening with further outbreaks of rain, the rain turning lighter and patchier from the south overnight. Winds remain light. Minimum temperature 8 °C.
