Tuesday 6 December 2016

Cowen opposes quick wind-down of Anglo

Published 03/09/2010 | 14:38

A quick wind-down of Anglo-Irish Bank could cost €70bn and was not in the best interest of the taxpayer, Taoiseach Brian Cowen said today.

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As European officials prepared to give their view on the future of Anglo - 8.2 billion euro in the red - Mr Cowen said the Government was at one on the issue.

"The idea that it would be wound up with us having to come up with up-front costs of winding up that bank to the tune of 70 or further billions (euro) clearly would not be in the interests of the taxpayer," he said.

"We have been seeking to try to minimise the exposure to the taxpayer, deal with it that way ... we are anxious to bring it to finality as soon as our discussions with the European Union are completed."

Mr Cowen said the Government was in advanced talks with European officials over the future of Anglo.

Finance Minister Brian Lenihan will discuss the matter with his European counterparts on Monday and Tuesday before reporting back to the Government.

At the start of the week Green Senator Dan Boyle had called for an early wind-down of the bank over five years or less.

But it is understood Cabinet discussions on Wednesday finished with most ministers favouring an orderly wind-down of Anglo over time, rather than a rapid closure.

Despite the appearance of a rift between sections of the coalition, Mr Cowen insisted: "The Government is at one on this and always has been.

"The issue that is determining the Government's policy on this issue is how do we minimise exposures to the taxpayer which are already considerable."

Mr Cowen also said he believed Government policy in relation to the banking crisis was right.

Anglo chairman Alan Dukes this week said the bank preferred to see a good-bank bad-bank scenario with 80pc wound up and a new viable bank created from the remaining good quality loan assets.

The state-run bank, which has been funded by €23bn of taxpayers' money, said it expected further losses as more troubled assets were shifted off the bank's books.

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