Wednesday 21 March 2018

Do we have full truth on Anglo?

THERE seems to be a never-ending debate on the best course of action to deal with Anglo Irish Bank. However, the simplest of solutions seems to have come to light during the whole Quinn insurance reserves argument. It is obvious the new Financial Regulator is taking, quite rightly, a hard line when it comes to reserves in financial institutions.

What I would suggest doing would be to use the VHI model (which does not have to meet these reserve levels as it is backed by the State) and apply it to the case of Anglo.

As Anglo is wholly owned by the State, and we are constantly being told that it is of systemic importance and has a bright viable future, surely if we apply the same logic as that for the VHI we could continue to run Anglo below the reserves level required until it is in a position to meet those reserves and, in doing so, reverse the decision to pump billions into the bank.

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