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Anglo Irish Bank shares worthless at point of nationalisation in 2009 - report

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Anglo Irish Bank

Anglo Irish Bank

Anglo Irish Bank

Anglo Irish Bank’s shares were worthless when the bank was nationalised in January 2009, an accountant appointed to determine whether former shareholders should get compensation has found.

The shares now determined to have been worthless were trading at 22 cents each when the bust lender was nationalised through a huge Government bailout in January 2009. Anglo Irish Bank was subsequently rolled into IBRC and later liquidated.

Taxpayers took on the costs of around €30bn to bail out the bank.

In November 2018 David Tynan, a partner at PwC, was appointed as Assessor to determine the fair and reasonable value of shares transferred and rights extinguished as a result of the State takeover of Anglo, under the terms of the 2009 nationalisation.

His final report has concluded that the fair and reasonable aggregate value of the transferred shares and the extinguished rights as at 15 January 2009 was nil and that no compensation is owed to former shareholders or former rights holders.

Anglo Irish Bank’s shares had collapsed well ahead of its nationalisation. They traded at €0.22 each on January 15, 2009. The same shares had peaked at €17 each in May 2007.

In his report David Tynan said he was contacted by 4,000 former shareholders during his assessment process, including some who submitted views in relation to share valuations.

Following its nationalisation the bust bank was put into a special liquidation in 2013 under the control of Kieran Wallace and Eamonn Richardson of KPMG.

They are still working through the liquidation, with billions of euro of assets sold off and claims being settled with creditors including taxpayers who bailed out the stricken lender and controversially with some bondholders.

Earlier this year one former shareholder, developer Paddy McKillen, lost a High Court challenge to the Assessor’s process – including what he said was the short timescale to respond.

Online Editors