Revised restructuring plan for Anglo

 

A revised restructuring plan will see Anglo Irish Bank rebranded and changed into an asset recovery bank, chairman Alan Dukes confirmed today.

Mr Dukes said the original plan to split Anglo into a funding bank and recovery agency had been shelved.

A plan to wind down the bank’s loan book over “a multi-year period” would be submitted to the European Commission by the end of January, he told RTÉ’s Morning Ireland.

However, Mr Dukes said that it was difficult to predict the timing for a recovery in loans.

He said there was some deposit outflow yesterday after Central Bank Governor Patrick Honohan revealed the bank’s name would be changed under the new plan and gradually wound down.

Mr Dukes also said it was "conceivable" the lender's assets would be merged with those of Irish Nationwide Building Society as their restructuring is completed.

Asked if the bailout plan for Ireland had affected deposits at the bank, Mr Dukes said: “I don’t think we have seen any specific effect of the EU/IMF agreement.”

Yesterday, Mr Honohan said the Anglo nameplate would be removed within weeks, and the bank closed “as quickly as we can do it”.

The plan aimed to design “an orderly resolution” of Anglo which complied with EU law.

The bank’s chief executive, Mike Aynsley, said erasing Anglo’s name would be further evidence that old Anglo ceased to exist.

Prof Honohan said the Government’s current plan to split Anglo into an asset recovery bank and a funding bank would be shelved and a new plan submitted.

The funding bank was an “artificial construct” to retain deposits and Central Bank funding while the loans were wound down. This would be shelved and Anglo’s wind-down would now be pushed “out to finality”.

He said Anglo’s deposits and Irish Nationwide’s €4 billion of deposits would be moved as part of the downsizing of the banks under the €85 billion rescue plan.

Depositors would find “comfortable homes”, and they would remain “fully guaranteed”.