Monday 18 December 2017

Regulator rules out quick Anglo wind-down

Joe Brennan

The new head of financial regulation Matthew Elderfield said a quick run down of Anglo Irish Bank would be too expensive.

"A rapid wind-down doesn't work. We want to get the optimum solution for taxpayers," he told the Dail public accounts committee yesterday.

He said that the National Treasury Management Agency, Department of Finance and the Central Bank were working with Anglo on all options for the bank, as it prepares to file a re-worked restructuring plan with the European Commission in the next few weeks.


"We have to find the least costly solution to a very big mess," Mr Elderfield said.

Anglo's new management's preferred option is to split the group into an internal 'good' and 'bad' bank, with the bad element wound down over time. Mr Elderfield said there may be a "tiny" part of the bank that could be carved out and make money.

He reiterated that the watchdog had not yet carried out an assessment of Anglo's capital requirements from either a likely or stress-test scenario over three years. These tests have been carried out on Allied Irish Banks, Bank of Ireland and EBS.

The delay in carrying out this so-called Prudential Capital Assessment Review on Anglo has been put on hold as discussions continue with the EU on its restructuring plan.

As an interim measure, the Government has pumped €8.3bn into the bank to shore up its capital base, in addition to €4m injected last year.

Finance Minister Brian Lenihan has signalled that it may need a further €10bn, bringing the total bailout bill to €22bn.

Irish Independent

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