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Re: Anglo Irish Bank is nationalised
Anglo Irish Bank is nationalised
The Irish Government has said it is to nationalise the Anglo Irish Bank.
The state had planned on pumping 1.5bn euros (£1.4bn) into the bank, but decided that recapitalisation was not the way to secure its future.
Ministers had been due to hand over the money in return for 75% shares with an annual fixed dividend being paid to the government of 10%.
A lack of liquidity has made it increasingly difficult for the banks to lend money to their customers.
The Bank of Ireland and the Allied Irish Bank are still set to get help.
Guarantees
Confidence in Irish banks has been undermined by the global credit crunch.
They have been especially badly hit by a slump in the Irish property market which has led to a collapse in the value of investments linked to the property market.
In October the Irish government acted to shore up its financial system by guaranteeing all deposits in Irish banks and all money borrowed by the banks from other financial institutions.
This led to many savers in the UK putting money there as it came before the UK government had boosted its protection for savings.
Anglo Irish recently lost top executives over a secret loans fiasco.
In December the bank's chairman resigned after a 87m euros loan controversy.
Sean Fitzpatrick admitting that he had transferred millions of euros out of the Dublin-based bank's accounts.
Chief executive David Drumm announced his resignation shortly afterwards.
Source: BBC NEWS | Business | Anglo Irish Bank is nationalised
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Anglo Irish Bank is nationalised
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