EU will place own man into Anglo to monitor wind-down
Published 05/10/2011 | 05:00
A SENIOR official -- approved and reporting to the EU Commission -- will ensure Anglo Irish Bank is sticking rigidly to its wind-down plan, the Irish Independent has learned.
The official shall have unlimited access to Anglo's books, records, documents, files and locations and will send a quarterly report to the commission on whether Anglo is meeting its targets.
It is possible an entire firm could be appointed rather than just an individual. Anglo, now known as the Irish Bank Resolution Corporation, will have major interactions with the official.
It is the first time such a mechanism has been used since Anglo was nationalised in January 2009. The official or firm will strictly report to the commission, rather than the IMF or ECB.
The official, known as a monitoring trustee, will operate for three years at the bank currently led by chief executive Mike Aynsley.
"A process to appoint a trustee is under way and is well advanced. When the process is completed, the bank will announce details of the monitoring trustee appointed,'' said the bank last night in a statement.
The person will be independent of Anglo and will assess whether Anglo is properly implementing its restructuring plan.
While the Irish Government can suggest one or two names who can fill the role, the commission has the powers to approve or reject the candidate. The person is expected to be a former investment banker, auditor or consultant.
The candidate is expected to have an expertise in loan restructuring.
If none of the Government's names are acceptable, the commission could end up appointing its own person to the key role.
If unhappy with Anglo's progress, the official can suggest measures the bank must undertake to get back on track. After providing an initial work plan, the official will then send a quarterly report on progress. It is unlikely this report will be published, although copies will be sent to the Government and Anglo.
The Government and Anglo are understood to have been told to extend full co-operation to the official.
It is understood Anglo, which has now been effectively merged with Irish Nationwide, will pay the salary of the official.