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Mon 02 Feb 2009Regulator investigates €300m loans by Anglo to buy its shares

THE FINANCIAL Regulator has confirmed it is investigating €300 million in loans given by Anglo Irish Bank to 10 business people to buy its own shares. The bank loaned the money to 10 unnamed clients last year so they could take a 10 per cent stake in the bank that was originally part of a holding assembled by businessman Seán Quinn and his family.

The State’s financial watchdog yesterday confirmed it was aware of the issue before the bank was nationalised earlier in the month. In a statement, it said details emerged during a formal evaluation process that led up to the State taking over the bank.

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