ANGLO Nationalised

ixus

http://www.finance.gov.ie/viewdoc.asp?DocID=5627

The Government has today decided, having consulted with the Board of Anglo Irish Bank Corporation plc (“Anglo”), to take steps that will enable the Bank to be taken into public ownership.

This decision has been taken after consultation with the Central Bank and the Financial Regulator which has confirmed that Anglo Irish Bank remains solvent.

Anglo Irish Bank is a major financial institution whose viability is of systemic importance to Ireland. Anglo has a balance sheet of some €100bn with a substantial deposit base which the State is determined to safeguard. The Government has made clear that it will ensure its continued viability. Anglo Irish Bank will continue to trade normally as a going concern, with appropriate Government support as necessary. All Anglo employees remain employed by the company.

The funding position of the bank has weakened and unacceptable practices that took place within it have caused serious reputational damage to the bank at a time when overall market sentiment towards it was negative. Accordingly the Government believes that the recapitalisation is not now the appropriate and effective means to secure its continued viability. Therefore the Government must move to the final and decisive step of public ownership.

The Government believes that the prospects for the institution are solidly underpinned in the new structure, with the benefit of state ownership and a renewed management and Board. In the current circumstances the State is the only available potential owner.

The recently appointed Chairman of the Board, Mr. Donal O’Connor, will stay on as Chairman. Anglo will be managed on an arms length basis as a commercial entity. A new Board will be appointed having regard to the need for appropriate continuity.

Shareholder rights will be respected in this process. The relevant legislation outlines a process for determining compensation as appropriate.

All customers of Anglo Irish Bank can be assured that the full amount of their deposits and savings are further safeguarded by this action. They can also be assured that they can and should continue transacting with Anglo as normal and there is no need for customers to take any steps as a result of this announcement. Anglo Irish Bank will communicate directly with all customers in the coming days.

Information will be available on the websites of Anglo Irish Bank, the Central Bank, the Financial Regulator, and the Department of Finance. Customers with particular queries may also phone Anglo Irish Bank or the Financial Regulator.

Creditors (including bondholders) of Anglo Irish Bank can be assured that it will continue to service its obligations and will repay its debts at maturity.

The Government has prepared legislation to put this decision into effect. This will be presented to the Houses of the Oireachtas on Tuesday.

Tomorrow before the markets open, it is expected that the Irish Stock Exchange and the UK Listing Authority will announce that Anglo shares will be suspended from listing on the Stock Exchanges.

The Minister said “I would again stress that this Government decision safeguards the interest of the depositors of Anglo, and the stability of the economy, given the significance of Anglo in this regard, as already recognised by the European Commission. The bank will continue to operate as normal and depositors and creditors should continue to transact as normal.”

Customers of all financial institutions can have confidence that the wider financial system in Ireland remains well capitalised and liquid and that the Irish authorities will be proactive to ensure that their interests are protected and their deposits and debts are secure.

The Government will ensure the continued viability of all systemic financial institutions.

The Government remains fully committed to the recapitalisation proposal already announced in relation to AIB and Bank of Ireland. These plans include injection of core tier 1 capital in the form of preference shares and underwriting of further core tier 1 capital issuance.

kenco

Not exactly a shock given all that has been going on. Tough times for those working there as I reckon its going to be carved up and the bits still viable 'sold' to BOI. The rest will be shut down.

stepbar

I'd say there's a lot of people sh1tting themselves now.....

pokermonkey

ixus wrote: »

http://www.finance.gov.ie/viewdoc.asp?DocID=5627

WTF!!!

Sound! Id like to aplaud the bank (please note sarcasm) for informing its employees of such news through the media.

pokermonkey

kenco wrote: »

Not exactly a shock given all that has been going on. Tough times for those working there as I reckon its going to be carved up and the bits still viable 'sold' to BOI. The rest will be shut down.

sorry - but its ignorant speculation like this that has fueled this problem from the start. i'm fully aware that some of the banks actions have been inexusable, but i'm sick to death of the scaremongering which has gone on the last number of months.

amcalester

pokermonkey wrote: »

WTF!!!

Sound! Id like to aplaud the bank (please note sarcasm) for informing its employees of such news through the media.

Ditto, left work at 4.10 today and not a word about this. What a shower of fcukers. Tomorrow's gonna be a fun day.

pokermonkey

amcalester wrote: »

Ditto, left work at 4.10 today and not a word about this. What a shower of fcukers. Tomorrow's gonna be a fun day.

Hey Gus!
i'll be at the egm tm thats for sure!!

Edit: just waiting for RTE news. might get some more info.

ranger4

Will this have a negitive effect with the other irish banks? and could the same fate await them?

amcalester

pokermonkey wrote: »

Hey Gus!
i'll be at the egm tm thats for sure!!

Edit: just waiting for RTE news. might get some more info.

I actually work in London so if you could post here what they say I'd appreciate it.

pokermonkey

im going fora pint. will be back later.

Sorry aMc, i thought you were a mate of mine over in the US.
you should be able to get info on the rte website.

short version: 100% nationalised. shares to be suspended.jobs safe. new board to be inserted. new business plan within 6 months. we're still a going concern. i'll be back later to chat about it.

ranger4

ranger4 wrote: »

Will this have a negitive effect with the other irish banks? and could the same fate await them?

Bank share prices should be interesting tomorrow

Hanley

It's finally the time to buy!!

Anglo definitely can't go any lower now

Pepe LeFrits

Well, at least tomorrow is Friday. 8 and a half hours and then weekend escape.

caminowebmaster

Bye Bye Anglo

It is fun watching this government dealing with this - really I can't take it too seriously.

Slutmonkey57b

pokermonkey wrote: »

WTF!!!

Sound! Id like to aplaud the bank (please note sarcasm) for informing its employees of such news through the media.

amcalester wrote: »

Ditto, left work at 4.10 today and not a word about this. What a shower of fcukers. Tomorrow's gonna be a fun day.

Anglo employees have my sympathies*



*may not be accurate as anyone who has had the misfortune to deal with hideously arrogant, vain, obnoxious Anglo employees will vouch for.

silverharp

I'm surprised there are no "jump Feckers!" posters put up along the green, was tempeted to do it myself, but in true Irish fashion i'd be the only one ending up in court:pac:

I remember coming across someone that had over a million in Anglo shares, but at least he was diversified , the rest of his money was in Dublin property:eek:

ahh, bring on the gollows humour

pokermonkey

Slutmonkey57b wrote: »

Anglo employees have my sympathies*



*may not be accurate as anyone who has had the misfortune to deal with hideously arrogant, vain, obnoxious Anglo employees will vouch for.

wow slutmonkey57b, what an incredibly insightful and witty comment.
i wish all of us arrogant, vain and obnoxious people could be as insightful and humourus as yourself.

godspeed.

Time Magazine

Lads, cop on.

pocketdooz

I wonder what the bottom feeders think of the 'nay-sayers' now ?

Hopefully the threads on here in recent months saved some people money.


.

Slutmonkey57b

pokermonkey wrote: »

wow slutmonkey57b, what an incredibly insightful and witty comment.
i wish all of us arrogant, vain and obnoxious people could be as insightful and humourus as yourself.

godspeed.

No humour intended, I can assure you. Arrogance in the financial markets (fed by the personal arrogance and bonus culture of the people that work in it) is what got the world into this mess.

pocketdooz wrote: »

I wonder what the bottom feeders think of the 'nay-sayers' now ?

Hopefully the threads on here in recent months saved some people money.


.

€380,000 for a terrace in Bray? There's still a long way down to go for a lot of people. And while naysayers may have been talking down bank stocks over the past 12 months, they didn't seem to have any problems with the markets before that, when the carousel was still spinning.