Nationalised Anglo Irish Bank should continue to operate because it would be more expensive for the state to wind down the business, its executive chairman Donal O’Connor said today.
“We consider maintaining the bank as a going concern, as opposed to a wind down, is in the best interest” of the State, Mr O’Connor told the Oireachtas committee on Finance today.
In such a scenario the company would see further outflows of deposits and need additional support if it were to be wound down, he said.
Anglo Irish, the State’s third-biggest bank by assets, has already sought a €4 billion injection from the government as it combats souring loans to property developers. It said last month that impaired loans may total €7.5 billion in the three years through September 2011.
The bank would consider selling some of its loans “at the right price” and has had “interest” in its US book, Mr O’Connor also said.
Minister for Finance Brian Lenihan nationalized Anglo Irish after a series of controversies beginning with the resignation of chairman Sean Fitzpatrick in December.
Mr Fitzpatrick resigned after saying he didn’t fully disclose his personal borrowings from the bank to shareholders in successive annual reports over an eight-year period.
The bank is the subject of a number of different investigations, including from gardai, the Financial Regulator and Director of Corporate Enforcement.
Mr O’Connor said today the bank was co-operating with these investigations.
Anglo Irish posted a record first-half loss last month after setting aside €4.1 billion to cover potential losses on loans to developers.
Bloomberg