Thursday 23 November 2017

Taxpayers have bought the right to know which bankers led us astray

Stephen Kinsella

Stephen Kinsella

The Anglo Tapes released by the Irish Independent and Sunday Independent continue to shock the nation. Anglo Irish Bank was a large part of Ireland's boom and bust story. Its executives clearly moved to entrap the State to relieve their losses. The tapes show senior Anglo bankers deliberately attempting to pass on their losses to the taxpayer. Which, of course, they eventually did.

The Eligible Liabilities Guarantee scheme of 2009 replaced the Credit Institutions (Financial Support) Scheme 2008, which put the taxpayer on the hook for an eventual €64bn of privately run-up debt, covered AIB, Bank of Ireland, Permanent TSB, Irish Life and Permanent, Irish Nationwide and Postbank. There is more to Ireland's boom and bust story than simply Anglo.

From the total bailout costs, excluding NAMA, Anglo Irish Bank cost €29.3bn, but these costs have been spread over decades. AIB cost us €19.8bn and we paid right away, largely with funds from the Exchequer. Irish Life and Permanent cost €4bn. INBS cost €5.4bn. EBS cost €0.9bn. Bank of Ireland cost us €4.7bn when you net out the sale of one billion's worth of BoI to external investors. That's €64.1bn, again excluding NAMA.

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