“business as usual” at Anglo Irish Bank?
Some interesting snippets of information to emerge from the, by all accounts, understandably somewhat heated EGM of the soon to be nationalised Anglo Irish Bank today at the Mansion House in Dublin. From the various linked reports
“Newly-appointed chairman Donal O’Connor revealed directors’ loans were given a ’no-risk’ bill of health and were not closely monitored.”
“Controversial former Anglo-Irish Bank chief Sean FitzPatrick secretly borrowed €129m from the lender, it was revealed tonight. The personal loans were used to buy shares, fund property deals and invest in pensions and film projects, shareholders were told at an emergency meeting in Dublin.”
“Auditors Ernst and Young said: ‘All of the audits conducted for Anglo Irish Bank shareholders were undertaken in accordance with the appropriate auditing standards.’”
…
The accounts for 2007 show [former Anglo-Irish Bank chief Sean FitzPatrick ] had loans worth €129m but only disclosed €7m to shareholders at the time. Other directors have arranged loans worth €95m, the bank said today.
The Government attempted to quash fears that account holders were rushing to withdraw money with Finance Minister Brian Lenihan insisting: “Some people took some money out, but there was no run on the bank.” And Mr Lenihan, who announced the takeover last night, said such talk would damage Ireland’s international reputation and possibly the economy.
…
[Taoiseach] Mr Cowen, who oversaw the nationalisation plan by phone during a trade mission to Japan, maintained the bank was in good stead and solvent as his officials finalise plans to bring in legislation next Tuesday to complete the nationalisation.
The Government has refused to give details on the state of Anglo-Irish’s loan book as questions remain over the decision to cancel the €1.5bn bail-out in favour of nationalisation. It will now press ahead with recapitalisation for the other major banks.
And from the RTÉ report
Taoiseach Brian Cowen has insisted that it is ‘business as usual’ at Anglo Irish Bank and that people should now be reassured that the institution is solvent.
For more expert commentary on the situation try Mick’s earlier podcast.
“The personal loans were used to buy shares, fund property deals and invest in pensions and film projects, shareholders were told at an emergency meeting in Dublin.”
When is he going to be able to pay the money back; and what is the state of the property deals that he invested in, and who were the counterpartys to the deal?
More and more it begins to look like this was just free money ….
Have listened to a few analyses of this issue but have not heard details of the boul Sean’s ( or the other directors )ability to repay. Presumably if Sean bought Anglo shares with the money he is not now in a position to service his loan. Not a good time to be selling housing assets.
Have not heard him interviewed – dont know if reporters parked outside his house.
Scaramoosh
great minds etc.
I would not be suprised if there is some political side to this. FF have proven to be no strangers to corrupt dealing with public money – perhaps convienient that nationalistation took place. Most Irish people knew that Berty was lying though his teeth but have now paid the price for re-electing the cute hoors and leaving obvious crooks in charge of running the country and regultating the private sector.
What about Sean Quinn?
__________________________________________
15 July 2008
Quinn Owns 15% Stake In Anglo Irish Bank
County Fermanagh Businessman Sean Quinn and his family have announced they are in the process of converting their holdings in Anglo Irish Bank to reflect their long-term commitment to the investment. This will represent the family taking a stake of almost 15% in the bank.
Chairman of Quinn Group, Sean Quinn, said: “The family regards these shareholdings in Anglo Irish Bank as long term holdings with significant opportunity for capital growth over such a period.
“In recent years, we have been highly impressed with Anglo’s ability to outperform the banking sector in terms of profit growth and we are confident this trend can be maintained over the longer term notwithstanding the current difficulties being experienced in international banking.”
Based on last nights closing price of €4.36 a share the Quinn family’s 15% in Anglo Irish Bank is worth just under €500m.
“In recent years, we have been highly impressed with Anglo’s ability to outperform the banking sector in terms of profit growth and we are confident this trend can be maintained over the longer term”
Read something like that in the ToryGraph about a year ago – a buy recommendation.
“Auditors Ernst and Young said: ‘All of the audits conducted for Anglo Irish Bank shareholders were undertaken in accordance with the appropriate auditing standards.’”
… when I hear (or read) the word ‘appropriate’ I reach for my Luger.
ABC
According to the Irish Times Quinn is not only Anglo Irish’s largest (ex) shareholder but also its largest borrower.
At least this news has the cheering effect of making me feel somewhat less uneasy about dipping into my £250 overdraft facility when I take a mind to go on the razzle.
Under UK company/tax law companies are not allowed to make loans to directors, is it different in the RoI?