Below is a timeline of key events that followed the announcement of a guarantee scheme for all Irish financial institutions.
SEPTEMBER
Then minister for finance Brian Lenihan announces a guarantee scheme on September 30th covering the country's six main banks. The State will now guarantee the security of the first €100,000 of savings in any particular institution - including money in current accounts.
DECEMBER
Anglo Irish chairman Sean FitzPatrick and chief executive David Drumm resign.
2009
JANUARY
Anglo’s finance director Willie McAteer is next to resign, the third executive at the bank to quit.
The Government is forced to take Anglo into full State ownership on January 15th.
Bank of Ireland chief executive Brian Goggin says he will step down as Bank of Ireland chief executive in the summer after the bank decided to accept a State capital bailout. His departure was expedited after he proclaimed to RTÉ that, following a voluntary pay cut, he would earn “less than €2 million” for the current financial year.
FEBRUARY
It emerges that Irish Life Permanent (ILP) moved deposits of €7.45 billion into Anglo for several days over the latter bank’s previous September 30th financial year end, making Anglo appear much stronger than it was.
ILP finance director Peter Fitzpatrick head of treasury David Gantly, and chief executive Denis Casey all resign.
The Government announces it will inject €3.5 billion each into Allied Irish Banks (AIB) and Bank of Ireland, for 25 per cent preference share stakes.
Dr Michael Walsh resigns as Irish Nationwide Building Society (INBS) chairman.
MARCH
AIB reveals heavy write downs on Irish development loans, forcing the bank’s Irish operation into its first loss since the bank was established in 1966.
Chairman and finance director of the Educational Building Society (EBS) resign after the lender made a loss of €38 million for 2008 as a result of property development loans.
APRIL
Michael Fingleton, the chief executive of INBS, agrees to step down, promising to repay his bonus.
The Government’s emergency budget of April 7th establishes the National Asset Management Agency (Nama) which would buy up to €90 billion in development and associated loans at a discount.
AIB agrees to raise a further €1.5 billion after a more severe stress test by the Government. Chairman Dermot Gleeson, chief executive Eugene Sheehy and finance chief John O’Donnell agreed to stand down.
MAY
Bank of Ireland governor Richard Burrows becomes the fifth bank chairman to step down.
Anglo Irish Bank’s half-year results show €4.1 billion in losses, the largest in Irish corporate history, wiping out the bank’s capital reserves. The Government agrees to a €4 billion State bailout; the bank hints at further future losses.
SEPTEMBER
The Government says it will buy property and associated loans of €77 billion from the banks at a cost of €54 billion, representing an average discount of 30 per cent across the five participating lenders.
The Government says Nama would buy €28 billion in loans from Anglo, €24 billion from AIB, €16 billion from Bank of Ireland, €8 billion from INBS and €1 billion from EBS.
AIB said it would now raise €2 billion in extra capital over the next 12 to 18 months.
Australian banker Mike Aynsley, takes over at Anglo.
Dr Patrick Honohan replaces John Hurley as governor of the Central Bank.
OCTOBER
Bermuda banking regulator, Matthew Elderfield, is appointed to the head of financial supervision, a new role within a reformed Central Bank Commission.
The Government issues a draft business plan saying the National Asset Management Agency would turn a profit of €5.5 billion by 2020.
DECEMBER
The Eligible Liabilities Guarantee comes into force.
AIB’s shareholders agree to participate in Nama.
Irish Nationwide and EBS secure approval from their members to take up to €2.4 billion in capital from the Government in return for issuing controlling stakes to the Government.
The Government’s total on bank capital injections now stands at €11 billion.
2010
MARCH
Nama purchases its first loans at a 47 per cent discount.
Anglo Irish reports the biggest corporate loss in Irish history – €12.7bn
The Central Bank says it is increasing the capital requirements for banks, forcing them to raise more funds. Anglo receives another €8.3bn and Irish Nationwide is nationalised.
MAY
The Government becomes the majority owner of the EBS after injecting €100 million into the building society and committing itself to providing a possible further €775 million after the 75-year-old institution failed to secure private investment.
JUNE
The State’s stake in Bank of Ireland rises to 36 per cent.
The Government seeks an extension of the guarantee scheme.
AUGUST
Anglo's losses reach a new record - €8.2 billion for the six months to June 2010
SEPTEMBER
The bailout of Anglo has now cost €34.3 billion.
Brian Lenihan says AIB needs a further €3 billion and INBS requires €2.7 billion. This pushes the bailout cost to €45bn.
From September, dated subordinated debt is not included in the guarantee.
DECEMBER
The State secures a High Court order to inject an additional €3.7 billion in funding into AIB, effectively nationalising the bank.
2011
MARCH
The Government announces the banking sector is to be recapitalised by a further €24 billion and restructured around two core retail banks. This is the fifth attempt to recapitalise the banks and brings the total cost of bailing out the sector from €46 billion to €70 billion.
JULY
The Minister for Finance Michael Noonan secures a High Court order to inject €2.7 billion into Irish Life & Permanent (IL&P), effectively nationalising the institution.
