Anglo Irish Bank Link: http://www.angloirishbank.at/ was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011.[1] It went into wind-down mode after nationalisation in 2009.[2] In July 2011, Anglo Irish merged with the Irish Nationwide Building Society, with the new company being named the Irish Bank Resolution Corporation. Michael Noonan, the Minister for Finance stated that the name change was important in order to remove "the negative international references associated with the appalling failings of both institutions and their previous managements."[3]
Anglo Irish mainly dealt in business and commercial banking, and had only a limited retail presence in the major Irish cities. It also had wealth management and treasury divisions. Anglo Irish had operations in Austria, Switzerland, the United Kingdom, the United States, and the Isle of Man.
The bank's heavy exposure to property lending, with most of its loan book being to builders and property developers, meant that it was badly affected by the downturn in the Irish property market in 2008.[4] In December 2008, the Irish government announced plans to inject €1.5bn of capital for a 75% stake in the bank, effectively nationalising it.[5][6] The Dublin and London Stock Exchanges immediately suspended trading in Anglo Irish's shares, with the final closing share price of €0.22 representing a fall of over 98% from its peak.[7][8][9]
On 16 January 2009, the Taoiseach Brian Cowen stated that is was "business as usual" at Anglo Irish Bank and that people should be reassured that the bank is solvent.[10] Between June and September 2009, the Minister for Finance provided €4 billion in capital. In a statement on 30 March 2010, a day before Anglo Irish Bank reported its financial results, the Minister Of Finance, Brian Lenihan announced an injection of €8.3 billion into the bank, noting that a further €10 billion may be required at a later stage to cover future losses and ensure an adequate capital base.
Since the nationalization of Anglo Irish Bank a number of controversies have arisen over certain business practises & loans, including loans to directors, and loans to people associated with Brendan Murtagh, EMPG and the QUINN group.
On 31 March 2010, Anglo Irish Bank reported results for the 15 months to December 2009. Loss for the period were €12.7 billion, with an operating profit before impairment of €2.4 billion and an impairment charges of €15.1 billion driving the overall result. It is the largest loss in Irish corporate history. Total assets declined to €85.2 billion at the end of 2009 from €101.3 billion in September 2008.
The European Commission allowed the Irish Government on 10 August 2010 to temporarily grant €10 billion to Anglo Irish Bank - this included an additional €1.4 billion sought by Ireland to allow the nationalised bank meet its regulatory capital requirements in light of increased costs associated with transferring loans to the National Asset Management Agency.
On 15 January 2009, the Government announced that it would take steps that would enable the Bank to be taken into State ownership. The Anglo Irish Bank Corporation Act, 2009 provided for the transfer of all the shares of the Bank to the Minister for Finance and was enacted under Irish law on 21 January 2009. On the same date, the Bank was re-registered as a private limited company.[14]
In order to protect the capital position of the Bank the Minister for Finance provided €4 billion in capital between June and September 2009. A liability management exercise was also undertaken in August 2009 and €1.8 billion of equity was realised on the buyback, at a significant discount, of subordinated debt instruments. In December 2009, the Minister committed to safeguard the Bank's regulatory capital position. As a result, the Minister issued of a promissory note for €8.3 billion on 31 March 2010, bringing the government's investment in Anglo Irish bank to €12.3 billion.[15] Since then the notes have risen in value to cover €30.6 billion of the €34.7 billion cost of Anglo Irish Bank and Irish Nationwide Bank (€25.3 billion of the €29.3 billion cost of Anglo and €5.3 billion of INBS’s €5.4 billion cost.)
In his statement to the Irish Parliament on 30 March 2010, the Minister for Finance stated: "Finding a long-term solution for Anglo Irish Bank is by far the biggest challenge in resolving the banking crisis. The sheer size of the bank means there are no easy or low cost options. Winding-up the bank is not and was never a viable option."
In September 2010, the government announced that it would separate the bank into two entities, an "asset recovery bank" to manage existing loans, and a separate "funding bank" holding deposits
On 31 March 2010, Anglo Irish Bank reported results for the 15 months to December 2009. Loss for the period were €12.7 billion, with an operating profit before impairment of €2.4 billion and an impairment charges of €15.1 billion driving the overall result. Total assets declined to €85.2 billion at the end of 2009 from €101.3 billion in September 2008.
With the substantial capital investment in the Bank by the government offsetting the provisions, the Core Tier 1 and total regulatory capital were €5 and €8 billion respectively at the end of 2009 versus risk weighted assets of €73 billion.
Anglo Irish Bank is the largest contributor of assets to Ireland's "bad bank", the National Asset Management Agency. It expects to transfer loans with a nominal value of €35.6 billion to NAMA over 2010 which would see the risk-weighted-assets fall to €43 billion.
In Anglo Irish Bank's 2009 Annual Report, referring to the QUINN group and related companies, it stated that the "High Court in Ireland appointed two joint provisional administrators to a significant corporate borrower of the Group. The Group is closely monitoring the situation and assessing the potential implications of this development which may have a negative impact on impairment charges in 2010."
1964 – Anglo Irish Bank was established in Dublin.
1971 – Anglo Irish listed on the stock exchange.
1988 – Anglo Irish acquired Irish Bank of Commerce.
1995 – Anglo Irish acquired Royal Trust Bank (Austria), a bank with a 100 year history, from Royal Bank of Canada and renamed it Anglo Irish Bank (Austria). Anglo Irish also acquired a loan portfolio from Allied Dunbar.
1996 – Anglo Irish acquired Ansbacher Bankers, which was established in Dublin in 1950.
1998 – Anglo Irish acquired Crédit Lyonnais (Austria) and combined it with its existing Austrian operations.
1999 – Anglo Irish acquired Smurfit Paribas Bank, a joint-venture that Banque Paribas had helped establish in Dublin in 1983. Anglo – Irish also bought a loan portfolio from Bayerische Hypo- und Vereinsbank.
2001 – Anglo Irish acquired Banque Marcuard Cook & Cie. in Geneva, Switzerland, and renamed it Anglo Irish Bank (Suisse).
2005 – Chief Executive Seán FitzPatrick stepped down to assume the role of chairman. David Drumm replaced him as CEO.
2007 – In January, it was reported that Seán Quinn bought a 5% stake of Anglo Irish Bank for $750 million. In July 2008 Quinn converted investments in the bank to ordinary shares, increasing his family's stake to 15%.
2007- Later in the same January, consultants Oliver Wyman named Anglo Irish Bank as the best bank in the world in a piece of research published to coincide with the World Economic Forum in Davos, Switzerland[46][47][48]
2008 – In December, both FitzPatrick, the Chairman, and Drumm, the CEO, resigned (see above).
2009 - Merrill Lynch, after receiving a fee of over $11 million, said that the bank was "financially sound", 11 days before nationalisation.[49]
2009 – The Irish Government nationalised Anglo Irish Bank at which point the Irish Stock Exchange and the London Stock Exchange delisted the bank. On 19 January the Board of Directors resigned to allow the Government to appoint a new board.
7 September 2009 - Mike Aynsley appointed as new Group Chief Executive.[50]
2010 – Alan Dukes appointed chairman
18 March 2010 – Former chairman Sean FitzPatrick is arrested for fraud.
31 March 2010 - At €12.7 billion, Anglo posts the largest loss in Irish corporate history.[11]
2 June 2010 - Irish Minister of Finance, Brian Lenihan, announced a €2bn cash injection for Anglo Irish Bank.[51]
8 September 2010 - Lenihan announced the separation into two entities.[18]
30 September 2010 - the Irish Government announces a total estimate of the eventual cost of the Anglo Irish bailout as at least €29.3 billion, while also announcing that two other banks, AIB and Irish Nationwide, will require additional funding[52]
31 March 2011 - For the year 2010 Anglo Irish Bank announced a €17.7 billion loss, breaking its own record for the highest corporate loss in Irish history.[1]
20 April 2011 - Anglo Irish Bank signage removed from all the Bank's buildings across the world in a coordinated effort.[53]
14 October 2011 - Anglo Irish Bank officially changed its name to Irish Bank Resolution Corporation Limited[54]
26 January 2012 - The High Court was told a total of 11 gardai are investigating the sinister goings-on at Anglo: Mr Justice Peter Kelly called the revelation "extraordinary".
Anglo Irish mainly dealt in business and commercial banking, and had only a limited retail presence in the major Irish cities. It also had wealth management and treasury divisions. Anglo Irish had operations in Austria, Switzerland, the United Kingdom, the United States, and the Isle of Man.
The bank's heavy exposure to property lending, with most of its loan book being to builders and property developers, meant that it was badly affected by the downturn in the Irish property market in 2008.[4] In December 2008, the Irish government announced plans to inject €1.5bn of capital for a 75% stake in the bank, effectively nationalising it.[5][6] The Dublin and London Stock Exchanges immediately suspended trading in Anglo Irish's shares, with the final closing share price of €0.22 representing a fall of over 98% from its peak.[7][8][9]
On 16 January 2009, the Taoiseach Brian Cowen stated that is was "business as usual" at Anglo Irish Bank and that people should be reassured that the bank is solvent.[10] Between June and September 2009, the Minister for Finance provided €4 billion in capital. In a statement on 30 March 2010, a day before Anglo Irish Bank reported its financial results, the Minister Of Finance, Brian Lenihan announced an injection of €8.3 billion into the bank, noting that a further €10 billion may be required at a later stage to cover future losses and ensure an adequate capital base.
Since the nationalization of Anglo Irish Bank a number of controversies have arisen over certain business practises & loans, including loans to directors, and loans to people associated with Brendan Murtagh, EMPG and the QUINN group.
On 31 March 2010, Anglo Irish Bank reported results for the 15 months to December 2009. Loss for the period were €12.7 billion, with an operating profit before impairment of €2.4 billion and an impairment charges of €15.1 billion driving the overall result. It is the largest loss in Irish corporate history. Total assets declined to €85.2 billion at the end of 2009 from €101.3 billion in September 2008.
The European Commission allowed the Irish Government on 10 August 2010 to temporarily grant €10 billion to Anglo Irish Bank - this included an additional €1.4 billion sought by Ireland to allow the nationalised bank meet its regulatory capital requirements in light of increased costs associated with transferring loans to the National Asset Management Agency.
On 15 January 2009, the Government announced that it would take steps that would enable the Bank to be taken into State ownership. The Anglo Irish Bank Corporation Act, 2009 provided for the transfer of all the shares of the Bank to the Minister for Finance and was enacted under Irish law on 21 January 2009. On the same date, the Bank was re-registered as a private limited company.[14]
In order to protect the capital position of the Bank the Minister for Finance provided €4 billion in capital between June and September 2009. A liability management exercise was also undertaken in August 2009 and €1.8 billion of equity was realised on the buyback, at a significant discount, of subordinated debt instruments. In December 2009, the Minister committed to safeguard the Bank's regulatory capital position. As a result, the Minister issued of a promissory note for €8.3 billion on 31 March 2010, bringing the government's investment in Anglo Irish bank to €12.3 billion.[15] Since then the notes have risen in value to cover €30.6 billion of the €34.7 billion cost of Anglo Irish Bank and Irish Nationwide Bank (€25.3 billion of the €29.3 billion cost of Anglo and €5.3 billion of INBS’s €5.4 billion cost.)
In his statement to the Irish Parliament on 30 March 2010, the Minister for Finance stated: "Finding a long-term solution for Anglo Irish Bank is by far the biggest challenge in resolving the banking crisis. The sheer size of the bank means there are no easy or low cost options. Winding-up the bank is not and was never a viable option."
In September 2010, the government announced that it would separate the bank into two entities, an "asset recovery bank" to manage existing loans, and a separate "funding bank" holding deposits
On 31 March 2010, Anglo Irish Bank reported results for the 15 months to December 2009. Loss for the period were €12.7 billion, with an operating profit before impairment of €2.4 billion and an impairment charges of €15.1 billion driving the overall result. Total assets declined to €85.2 billion at the end of 2009 from €101.3 billion in September 2008.
With the substantial capital investment in the Bank by the government offsetting the provisions, the Core Tier 1 and total regulatory capital were €5 and €8 billion respectively at the end of 2009 versus risk weighted assets of €73 billion.
Anglo Irish Bank is the largest contributor of assets to Ireland's "bad bank", the National Asset Management Agency. It expects to transfer loans with a nominal value of €35.6 billion to NAMA over 2010 which would see the risk-weighted-assets fall to €43 billion.
In Anglo Irish Bank's 2009 Annual Report, referring to the QUINN group and related companies, it stated that the "High Court in Ireland appointed two joint provisional administrators to a significant corporate borrower of the Group. The Group is closely monitoring the situation and assessing the potential implications of this development which may have a negative impact on impairment charges in 2010."
1964 – Anglo Irish Bank was established in Dublin.
1971 – Anglo Irish listed on the stock exchange.
1988 – Anglo Irish acquired Irish Bank of Commerce.
1995 – Anglo Irish acquired Royal Trust Bank (Austria), a bank with a 100 year history, from Royal Bank of Canada and renamed it Anglo Irish Bank (Austria). Anglo Irish also acquired a loan portfolio from Allied Dunbar.
1996 – Anglo Irish acquired Ansbacher Bankers, which was established in Dublin in 1950.
1998 – Anglo Irish acquired Crédit Lyonnais (Austria) and combined it with its existing Austrian operations.
1999 – Anglo Irish acquired Smurfit Paribas Bank, a joint-venture that Banque Paribas had helped establish in Dublin in 1983. Anglo – Irish also bought a loan portfolio from Bayerische Hypo- und Vereinsbank.
2001 – Anglo Irish acquired Banque Marcuard Cook & Cie. in Geneva, Switzerland, and renamed it Anglo Irish Bank (Suisse).
2005 – Chief Executive Seán FitzPatrick stepped down to assume the role of chairman. David Drumm replaced him as CEO.
2007 – In January, it was reported that Seán Quinn bought a 5% stake of Anglo Irish Bank for $750 million. In July 2008 Quinn converted investments in the bank to ordinary shares, increasing his family's stake to 15%.
2007- Later in the same January, consultants Oliver Wyman named Anglo Irish Bank as the best bank in the world in a piece of research published to coincide with the World Economic Forum in Davos, Switzerland[46][47][48]
2008 – In December, both FitzPatrick, the Chairman, and Drumm, the CEO, resigned (see above).
2009 - Merrill Lynch, after receiving a fee of over $11 million, said that the bank was "financially sound", 11 days before nationalisation.[49]
2009 – The Irish Government nationalised Anglo Irish Bank at which point the Irish Stock Exchange and the London Stock Exchange delisted the bank. On 19 January the Board of Directors resigned to allow the Government to appoint a new board.
7 September 2009 - Mike Aynsley appointed as new Group Chief Executive.[50]
2010 – Alan Dukes appointed chairman
18 March 2010 – Former chairman Sean FitzPatrick is arrested for fraud.
31 March 2010 - At €12.7 billion, Anglo posts the largest loss in Irish corporate history.[11]
2 June 2010 - Irish Minister of Finance, Brian Lenihan, announced a €2bn cash injection for Anglo Irish Bank.[51]
8 September 2010 - Lenihan announced the separation into two entities.[18]
30 September 2010 - the Irish Government announces a total estimate of the eventual cost of the Anglo Irish bailout as at least €29.3 billion, while also announcing that two other banks, AIB and Irish Nationwide, will require additional funding[52]
31 March 2011 - For the year 2010 Anglo Irish Bank announced a €17.7 billion loss, breaking its own record for the highest corporate loss in Irish history.[1]
20 April 2011 - Anglo Irish Bank signage removed from all the Bank's buildings across the world in a coordinated effort.[53]
14 October 2011 - Anglo Irish Bank officially changed its name to Irish Bank Resolution Corporation Limited[54]
26 January 2012 - The High Court was told a total of 11 gardai are investigating the sinister goings-on at Anglo: Mr Justice Peter Kelly called the revelation "extraordinary".
