Wednesday 21 February 2018

Anglo's top brass plan €7bn 'dance' with IL&P

Central Bank wrong to claim Tapes can't aid investigations into failed institution, writes Tom Lyons

Anglo's former head of treasury John Bowe
Anglo's former head of treasury John Bowe
David Drumm

Tom Lyons

It is close to September 30, 2008, or Anglo Irish Bank's financial year end. At this date Anglo will have to reveal how a large black hole has opened up in its customer deposit book because clients have withdrawn billions from it. This hole has to be filled and Anglo has teamed up with Irish Life & Permanent (also under financial pressure) to do so.

In order to disguise the origins of its funding, Anglo was moving cash from its balance sheet over to IL&P's assurance arm in order that the money would come back as a customer deposit and not an interbank deposit.

This was important because the market ranked customer deposits as far more important than interbank deposits when trying to gauge whether a bank would survive the crisis.

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