Anglo Irish Bank will be split into an asset recovery bank and a funding bank, the Department of Finance said today.
The recovery bank, or so-called bad bank, will be eventually be sold or its assets will be run down over a period of time.
The funding bank will be separated from Anglo’s loan assets and will be owned directly by the Minister for Finance. It will not engage in any lending but will continue to accept and manage deposits.
This is a variation of the proposals from Anglo’s board. It wanted to split the bank into an asset management unit, which would have looked after the bank’s “lower quality” assets that remained after transfers to Nama were complete, and a good bank, which would manage the performing loans, retain the bank’s deposit funding and engaged in new lending.
source http://www.irishtimes.com/newspaper/breaking/2010/0908/breaking10.html
Comment:
This is a prime example of accounting gimmickry
The tragedy goes on at Anglo Irish Bank the bright sparks at the department of Finance have decided to allow Anglo to metamorphose into a good bank and a bad bank
This is yet another example of a totally out of touch Minster that is just not living on the same planet as the rest of the Irish people
Having pumped billions down this toxic toilet he is now going to double the cost of running the same basket case
We the people are still waiting to be told exactly where did the 25 billion go that he has already pumped into Anglo go? That the minster says is “Gone”!
The money isn’t just gone, Disappeared, somebody got this money so where did it go who is this somebody.
Splitting this Toxic toilet will not make the problem of Anglo go away
The “Brand” Anglo is toxic and it should be shut down now .
