Top Irish bank nationalised
(19 January 2009 – Europe) Irelands Government has taken the dramatic step of nationalising one of the country’s top banks to prevent its collapse, after being hit by a loan scandal and weakened funding position.
The Government nationalised Anglo Irish Bank to prevent a possible collapse that could have undermined the sector and crippled the country's finances.
The stock market value of Ireland's number three bank has plummeted since a loans scandal last month, and the government said full state control would ensure that the lender's 80 billion euros (A$158 billion) worth of deposits would be secure.
The Irish Government said that the funding position of the bank had weakened and unacceptable practices that took place within it have caused serious reputational damage to the bank at a time when overall market sentiment towards it was negative.
Accordingly the Government believes that public ownership is now the only appropriate and effective means to secure its continued viability.
The recently appointed Chairman of the Board, Donal O’Connor, will stay on as Chairman. Anglo will be managed on an arms length basis as a commercial entity. A new Board will be appointed having regard to the need for appropriate continuity.
The Government said that it will ensure the continued viability of all systemic financial institutions.
The stock market value of Ireland's number three bank has plummeted since a loans scandal last month, and the government said full state control would ensure that the lender's 80 billion euros (A$158 billion) worth of deposits would be secure.
The Irish Government said that the funding position of the bank had weakened and unacceptable practices that took place within it have caused serious reputational damage to the bank at a time when overall market sentiment towards it was negative.
Accordingly the Government believes that public ownership is now the only appropriate and effective means to secure its continued viability.
The recently appointed Chairman of the Board, Donal O’Connor, will stay on as Chairman. Anglo will be managed on an arms length basis as a commercial entity. A new Board will be appointed having regard to the need for appropriate continuity.
The Government said that it will ensure the continued viability of all systemic financial institutions.
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