€25bn a 'pretty good estimate' for Anglo bailout
Mike Aynsley,Chief Executive of Anglo Irish Bank, Alan Dukes, Chairman and Maarten Van Eden, Chief Financial Officer
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Anglo Irish Bank Chief Executive Officer Mike Aynsley said today €25bn is a "pretty good estimate" of the total bailout cost for the bank.
“There will be some adjustments to that,” he said in an interview on Bloomberg Television.
“It’s not possible to entirely predict the exact numbers. But we feel that we’re really coming to the end of the process now and we’re not very far away.”
The government has already pumped €22.9bn into Anglo and this week announced it would split the bank in two and gave the financial regulator until next month to determine the final cost.
Standard & Poor’s last month said the cost may eventually rise to €35bn, a figure the bank has disputed.
Aynsley said Anglo Irish “can’t really reconcile” its bailout-cost estimate with the S&P figure.
“We suspect they’re really using some pretty severe stress scenarios on an overall basis to come up with them,” he said.
The government plan will see the creation of a so-called good bank that will retain the lender’s deposits, and an asset- recovery bank, which will run down its loans over time.
Anglo Chief Financial Officer Maarten van Eden said in an interview hours before the bank-split announcement that the lender had been experiencing “material” outflows of deposits amid uncertainty over its future. Aynsley said today the rate may be easing.
“Since the end of the first half we had a pretty volatile time in global markets,” he said. “We’ve seen some outflows but we think it’s starting to settle down which is pretty encouraging.”
- Andrea Catherwood
© Bloomberg
