Business Irish

Saturday 21 October 2017

AIB timeline

February 19, 2007: Allied Irish Banks' share price peaks at €23.95. May 15, 2008: Despite an increase in impaired loans, AIB is "satisfied that our exposures are well-structured". June 30, 2008: AIB raises its interim dividend by 10pc to 30.6c. September 15, 2008: In New York, the investment bank Lehman Brothers collapses. Stocks fall worldwide and credit markets seize up. September 30, 2008: Finance Minister Brian Lenihan announces a blanket guarantee of deposits in Irish banks. October 23, 2008: "We would rather die than raise equity," says AIB's chief executive Eugene Sheehy despite estimates it will write down €4.5bn worth of bad loans by 2011. December 22, 2008: The Government pumps €2bn into AIB in exchange for a 25pc stake in the bank. February 11, 2009: The Government recapitalises AIB and Bank of Ireland to the tune of €3.5bn each. The taxpayer now holds 36pc of AIB. March 2, 2009: AIB posts profits of €885m. May 1, 2009: CEO Eugene Sheehy, finance director John O'Donnell and group chairman Dermot Gleeson announce they will resign. May 13, 2009: Eugene Sheehy tells shareholders "the bank was wrong" on the economy amid angry scenes at the AGM. September 16, 2009: The bank says that the 30pc average discount on NAMA loans estimated by Mr Lenihan will "exceed the estimated maximum for AIB". November 18, 2009: Colm Doherty is appointed AIB's new chief executive. The bank finally bows to government pressure and caps his salary at €500,000. November 30, 2009: AIB formally proposes to enter NAMA. March 2, 2010: AIB posts a loss of €2.3bn for 2009. March 30, 2010: NAMA imposes a 43pc discount on the first round of loans from AIB. The Financial Regulator gives the bank until the end of the year to raise €7.4bn or face nationalisation. July 19, 2010: AIB takes a 48.5pc discount on the second round of loans transferred to NAMA. September 10, 2010: AIB sells its stake in the Polish bank WBK Zachodni to Santander for €3.1bn. September 20, 2010: Fexco buys AIB's Goodbody stockbrokers for just €24m. September 30, 2010: The bank guarantee is extended. Mr Lenihan says AIB will need another €3bn, likely pushing the Government's stake in the bank above 90pc and de facto nationalisation.

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Irish Independent

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