Joe Brennan: Quinn and Anglo Irish Bank had built up a secretrelationship that became unhealthy for both
QUINN Insurance and Anglo Irish Bank have been locked in an embrace for several years, an embrace that has had deadly effects on the two organisations which were once seen as the country's most dynamic bank and dynamic insurer.
The unhealthy relationship first came to light three years ago when it emerged that the family of Sean Quinn had begun building up a stake in Anglo Irish Bank. At the time, the move to link the successful Quinn family to the bank was seen as a masterstroke.
In July 2008, the Quinns disclosed they had a 15pc stake in Anglo held through a complex financial mechanism known as Contracts for Difference (CFDs). In effect, CFDs are bets over the value of the share price, with the buyer betting that the share price will increase.