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Anglo Irish Bank To Be "decommissioned" - Minister

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http://uk.reuters.com/article/idUKTRE6830VG20100904

Nationalised Anglo Irish Bank ANGIB.UL will be "decommissioned," with a decision on its fate expected within a few weeks, a junior government minister was quoted on Saturday as saying.

The comments by Conor Lenihan, a minister of state in charge of science, technology, innovation and natural resources, was the latest signal from the government that it was about to bow to growing political pressure to shut down the lender.

"It has to be decommissioned, it will be decommissioned -- fairly swiftly in terms of the actual decision being made in a few weeks with the permission of Europe," Conor Lenihan, who is the brother and ruling party colleague of Finance Minister Brian Lenihan, told the Irish Independent newspaper.

Investors see the escalating cost of rescuing Anglo Irish as a major threat to Ireland's creditworthiness and the next potential euro zone troublespot after Greece.

European Competition Commissioner Joaquin Almunia, who will have the final say on Anglo's fate, said he would meet Brian Lenihan in the coming days to discuss the matter.

"There should be burden-sharing and without putting too much debt on Irish taxpayers," Almunia told a news conference in Italy.

Anglo's new management has proposed carving out a small functioning bank via a "good bank/bad bank" split but ministers have signalled a shift in policy towards an eventual wind-down.

The government -- with a wafer-thin parliamentary majority -- will be hard-pressed to ignore public opinion, already aghast at having to shell out 25 billion euros (20 billion pounds) for the bank's reckless property lending while facing yet another round of tax hikes and spending cuts in this December's budget.

Prime Minister Brian Cowen said on Friday that a swift wind up could cost 70 billion euros or more and would not be in the taxpayers' interest.

"There has to be an orderly wind-down," Conor Lenihan said. "But it would be costly and dangerous to wind it down quickly."

Looks like we have a new word in the buzz word recovery.

Decommissioned.

We aren't bankrupt we are just being decommissioned.

Your not losing your job it's just being decommissioned.

I love the term burden sharing, when it comes to losses they should be shared but the profits are hoarded. At least the taxpayer can be rest assured they won't be burdened with too much of the loss.

Doublespeak is being taken to whole new levels.

We could be in for a decommission recovery.

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Isn't it usually weapons that are decommissioned?

I remember Anglo Irish being at the top of the best buy savings interest rates at about the time that Icesave went down. Had a bond in there at the time, happily it matured and I was able to get out of there with my 6% before "decommissioning".

Edited by TeddyBear

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Prime Minister Brian Cowen said on Friday that a swift wind up could cost 70 billion euros or more ...

Conor Lenihan said. "But it would be costly and dangerous to wind it down quickly."

Not a lot of people realise that a slow wind down costs less than a quick wind down.

Just like slow torture hurts less than fast torture.

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Isn't it usually weapons that are decommissioned?

(...)

Yeah, started with warships I think, to take them out of active service and remove their naval autonomy.

Technically, I think the word means to "remove the authority that had been entrusted".

So in this case, they may be talking about the removal of the banking licence etc.

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Yeah, started with warships I think, to take them out of active service and remove their naval autonomy.

Technically, I think the word means to "remove the authority that had been entrusted".

So in this case, they may be talking about the removal of the banking licence etc.

Isn't removing the banking license the same as closing them down? If they have no license they can't function.

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Isn't removing the banking license the same as closing them down? If they have no license they can't function.

what about jailing the fraudsters?

will the bank still be able to function without them?

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In Ireland decommissioning is the special phrase referring to IRA weapons during the peace process.

This wouldn't have been announced without approval by the ECB, I guess.

In that case perhaps they should have said that Anglo Irish Bank is going to be Kneecapped.

:blink:

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http://uk.reuters.com/article/idUKTRE6830VG20100905

The European Commission wants to wind down nationalised Anglo Irish Bank ANGIB.UL while management still believes it would better to keep a rump open, the bank's chief executive said in an interview in the Sunday Business Post.

"The European Commission is saying, 'this bank has dropped 25 billion euros (20 billion pounds) and it doesn't deserve to survive', and they're right. But you have a dysfunctional banking system," Mike Aynsley was quoted as saying in the interview.

Investors see the escalating cost of rescuing Anglo Irish and uncertainty over its fate as a major threat to Ireland's creditworthiness and the next potential euro zone trouble spot after Greece.

Science and technology minister Conor Lenihan said on Saturday the bank would be "decommissioned," the latest signal from the government that it is about to bow to growing political pressure to shut down the lender.

The Sunday Times said without citing sources that Finance Minister Brian Lenihan would ask in his meeting with European Competition Commissioner Joaquin Almunia on Monday if Anglo Irish could be wound down over a period of up to 15 years, arguing that a quicker closure would be too costly.

Almunia, who will have the final say on Anglo Irish's fate, said on Saturday he would discuss the matter with Lenihan but did not say what was his preferred outcome.

Anglo Irish CEO Aynsley has proposed carving out a small functioning bank via a "good bank/bad bank" split but there are signs ministers are moving towards wanting an eventual winddown.

Aysnley told the Sunday Business Post the good bank/bad bank split "doesn't look like it is going to happen."

The government -- with a wafer-thin parliamentary majority -- will be hard-pressed to ignore public opinion, already aghast at having to shell out 25 billion euros for the bank's reckless property lending while facing yet another round of tax hikes and spending cuts in this December's budget.

Aynsley told the Sunday Business Post it would be wrong to close the bank entirely as even a gradual wind down over 10 years would cost 4 billion to 5 billion more than keeping part of it open.

Looks like this bank is finished.

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http://www.sbpost.ie/news/anglo-irish-to-fall-foul-of-brussels-veto-51352.html

The EU Commission will veto the reinvention of Anglo Irish Bank as a significant financial entity, and looks set to order either its wind-down over a period of years or, at most, the continuation of a small-scale operation to retain savings and manage a small loan book.

Intense government lobbying in Brussels will continue ahead of the final decision due next month.

Anglo management had proposed the creation of a ‘good bank’ to take on €10 billion to €15 billion in loans and act as a significant lender to the SME sector, a strategy which the government had believed might help it minimise the costs to the taxpayer.

However, Brussels has become increasingly sceptical about the plan.

There were also clear signals this weekend of a changing mood in government towards Anglo and a move away from support for the creation of any significant future for the troubled bank.

Green Party finance spokesman Dan Boyle said that ‘‘the party is leaning towards the position that the most cost-effective way of dealing with Anglo is to bring about a quicker wind-down of the bank."

Meanwhile, senior Department of Finance sources emphasised that the overriding goal of minister Brian Lenihan was to minimise cost to the taxpayer. It is understood that the EU Commission believes it cannot give the green light to the reinvention of Anglo as a bank which would have a significant role in the economy.

It believes that this would be anti-competitive - as a bank bailed out by the taxpayer would be competing in the market - and that it would set a dangerous precedent.

For these reasons, it is now likely that it will either push for the wind-down of the bank over a period of years, or agree that a small, ‘good’ bank can be created as a means of avoiding a sudden exit of Anglo’s customer deposits, but with a severely limited mandate for new lending.

The government had backed the good bank plan, largely because it fears that the sudden departure of Anglo’s customer deposits if a wind-down was announced could put cash pressure on the exchequer.

The government fears that funding the bank’s operations during a wind-down phase might also be complicated and costly.

Discussions with Brussels will continue on these issues before a final decision, with sources in Dublin emphasising that Brussels has still not finished its deliberations.

Fears about the cost of bailing out Anglo were partly responsible for a surge in the interest rates on Irish government bonds last week, with ten-year interest rates approaching 5.9 per cent by last Friday, a record 3.65 per cent above German levels.

This has led to concern that the price of raising fresh debt for the government could exceed the psychologically important 6 per cent level, unless conditions improve.

The Irish govt starting to panic a bit?

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http://uk.reuters.co...E6830VG20100904

Looks like we have a new word in the buzz word recovery.

Decommissioned.

We aren't bankrupt we are just being decommissioned.

Your not losing your job it's just being decommissioned.

I love the term burden sharing, when it comes to losses they should be shared but the profits are hoarded. At least the taxpayer can be rest assured they won't be burdened with too much of the loss.

Doublespeak is being taken to whole new levels.

We could be in for a decommission recovery.

Thanks for the post, this is an interesting development. This particular bit:

"There should be burden-sharing and without putting too much debt on Irish taxpayers," Almunia told a news conference in Italy.

looks like a game changer. To me it implies a haircut on bondholders...

Any money manager still holding euro bonds by the end of the week will have some explaining to do if it goes ahead.

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looks like a game changer. To me it implies a haircut on bondholders...

That will be interesting if your interpretation is correct, so far the bondholders have escaped taking any sort of hit, if govts are now going to say the taxpayer isn't going to foot the total bill things could get very interesting.

Clearly the Irish govt have got a very fine political tightrope, understandable the taxpayer doesn't want to give the bankers any more cash.

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For the record, there's a British dimension to this, because the savings accounts and ISAs marketed by the Post Office are in fact Anglo-Irish ones badged as Post Office ... and are not covered by the FSCS guarantee. I imagine that the UK government will be exerting quite a bit of pressure behind the scenes on their Irish counterparts not to walk away from this bank and let it go down.

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For the record, there's a British dimension to this, because the savings accounts and ISAs marketed by the Post Office are in fact Anglo-Irish ones badged as Post Office ... and are not covered by the FSCS guarantee. I imagine that the UK government will be exerting quite a bit of pressure behind the scenes on their Irish counterparts not to walk away from this bank and let it go down.

I took a 5 yr fixed repayment mortgage via the PO last year, if they wind the bank down are they going to be demanding all the their cash back? :o:lol:

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For the record, there's a British dimension to this, because the savings accounts and ISAs marketed by the Post Office are in fact Anglo-Irish ones badged as Post Office ... and are not covered by the FSCS guarantee. I imagine that the UK government will be exerting quite a bit of pressure behind the scenes on their Irish counterparts not to walk away from this bank and let it go down.

No, Bank of Ireland. Different ... but kind of the same!

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For the record, there's a British dimension to this, because the savings accounts and ISAs marketed by the Post Office are in fact Anglo-Irish ones badged as Post Office ... and are not covered by the FSCS guarantee. I imagine that the UK government will be exerting quite a bit of pressure behind the scenes on their Irish counterparts not to walk away from this bank and let it go down.

No, they are Bank of Ireland, a different government owned Irish bank.

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Not a lot of people realise that a slow wind down costs less than a quick wind down.

Just like slow torture hurts less than fast torture.

Can just imagine the Norman sergeant at arms giving orders "Just one click of the rack per day lads" with some pythonesque, peasant making stupid grimaces in the corner - till something pops.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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