Scandal-hit Anglo paid €25m to advisers
Nationalised lender Anglo Irish has spent €25m on advisers and lawyers as it investigates past scandals and prepares to split itself into a so-called "good and bad" bank.
The fees paid to advisers form part of the €42m in "exceptional costs'' incurred by the bank in the 15 months to the end of 2009. The ending of various leases cost €4m, while redundancy costs for staff amounted to €13m, discloses its annual report.
The €25m in costs for advisers was needed for "professional fees associated with the bank's restructuring process'', said the bank.
The other part of this money was for "investigations and reviews into legacy issues''.
The bank, now under new management led by Australian banker Mike Aynsley, has hired a battery of advisers to help with its restructuring plan, among them Bain & Co, KPMG and JP Morgan.
The New York consultancy SBCC has advised the bank on risk management and loan valuations. Also retained are auditors Deloitte and legal advisers McCann FitzGerald and Freshfields.
Ironically, Anglo has traditionally spent little on outside advice and in 2008 the bank did not spend a single euro on consultants. But due to the sheer scale of investigations into the bank's recent history it has been forced to draw on regular legal advice.
The sale of Anglo shares to a so-called "golden circle" of investors is one of three investigations the bank has been drawn into. Also highly important is an investigation into deposits in September 2008 between Anglo and IL&P.
The final area being investigated are the loans of Sean FitzPatrick, which were moved out of Anglo at year-end to Irish Nationwide and not disclosed to shareholders.
It is understood Anglo Irish has provided extensive information on all three of these areas to garda investigators.
They were seen last year carrying out box files from its headquarters on St Stephen's Green.
The bank slashed its staff costs over the last year by 33pc, with savings achieved via pay cuts, lay-offs and a curb on bonuses.