Anglo, Nationwide prepare for sale of deposit books
ANGLO Irish Bank has already retained advisers for the sale of its wealth management business and hopes to have a firm disposal proposal before the Department of Finance well in advance of the March 31 deadline.
The news comes after a High Court order on Tuesday paved the way for the winding down of Anglo and Irish Nationwide Building Society (INBS) and the sale of their deposit books.
Court documents also reveal that INBS has been given a budget of €20m for mortgage lending between 2011 and 2012, despite the fact the building society is not allowed to advance 'new' mortgages.
This week's announcement on Anglo and INBS's future marks the culmination of more than two years of deliberations on how the institutions should be resolved.
By March 31, Anglo must provide "detailed" plans to rationalise overseas offices in Vienna, Dusseldorf, Jersey and the UK and to sell off the wealth management business.
Sources this weekend confirmed the wealth management business was already being prepared for sale before Tuesday's announcement and that advisers had been retained.
INBS, meanwhile, must draw up plans for the "closure" of offices in Northern Ireland, London and the Isle of Man, though no date for these is specified.
Court documents on INBS also reveal the building society has suffered "significant" deterioration of its deposit book since the end of 2009, when Nationwide had customer deposits of €5.3bn.
Under the new plan, Nationwide will no longer be advancing new mortgages, but court documents show the bank will have a budget of €20m to cover "contractually committed amounts" and "amounts arising as part of the restructuring of existing mortgage facilities".
An online data room for the sell-off of INBS and Anglo's deposit books has already opened, but sources refused to say how many banks were running the rule over the deposits.
Would-be buyers have been given a deadline of less than two weeks to submit bids for the package, which is believed to include about €10bn of Anglo deposits and less than €4bn from INBS.
In court documents, the Department of Finance said there was a "clear expectation articulated by the external authorities [who are funding Ireland's bailout] that the transfer of these deposits should happen or at least commence in January 2011".