Business Irish

Friday 29 August 2014

Anglo Irish Bank shutdown: Taxpayers shell out €110m on fees

Accountants, bankers and lawyers clean-up in liquidation of bank

Donal O'Donovan

Published 06/06/2014 | 15:03

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The Anglo Irish Bank sign being removed from outside the bank's HQ in 2011. Photo: Damien Eagers
The Anglo Irish Bank sign being removed from outside the bank's HQ in 2011. Photo: Damien Eagers

Fees paid to accountants, banks and lawyers in the liquidation of the former Anglo Irish Bank (now IBRC) totalled €111.6m, new figures released today show.

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Special liquidator and accountancy firm KPMG earned the lion's share of the fees or €48m in the 14 months to the end of March or 40pc of the total cost associated with shutting the former Anglo Irish Bank.

Charges paid to KPMG - where the special liquidators Kieran Wallace and Eamonn Richardson are partners - were in line with rates struck by NAMA but were reduced by €5m following discussions requested by the Minister for Finance Michael Noonan, according to a progress report on the process published today.

Law firm A&L Goodbody racked up €25m in fees but agreed a rebate of €2.5m, and international law firm Linklaters earned €16m – and agreed a €100,000 rebate.

Other professional advisers who received fees included Arthur Cox, PwC, Savills, Deloitte, Merrills and Goodbody with the fees coming from the liquidation of taxpayer-owned IBRC.

The decision to close IBRC early by putting it into liquidation ultimately saved taxpayers €1.1bn it would have cost to keep the bank running until 2020, according to the report.

Overheads at the bank including staff costs and rent were cut during the liquidation, the report said.

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