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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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| Anglo Irish BK. | LSE:ANGL | London | Ordinary Share | IE00B06H8J93 | EUR0.16 |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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| 0.00 | 0.00% | 0.207 | 0.00 | 00:00:00 |
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| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
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| - | O | 0 | 0.207 | EUR |
Anglo Irish Bank (ANGL) Share Charts1 Year Anglo Irish Bank Chart |
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1 Month Anglo Irish Bank Chart |
Intraday Anglo Irish Bank Chart |
| Date | Time | Title | Posts |
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| 06/12/2019 | 15:45 | Anglo Irish Bank: Post split | 4,524 |
| 11/5/2010 | 21:07 | ANGLO IRISH BANK...........IS IT IRELANDS NORTHERN ROCK? | 267 |
| 06/3/2008 | 21:14 | any data to share as to massive drop? | - |
| 21/2/2008 | 19:30 | ANGLO IRISH BANK - excellent value banking stock | 55 |
| 06/5/2005 | 16:12 | Anglo Irish Bank | 80 |
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Posted at 26/2/2009 08:07 by masurenguy Independent.ieThursday 26th February 2009 Key 'golden circle' files seized in Anglo swoop By Shane Phelan, Joe Brennan and Dearbhail McDonald FRAUD squad detectives have seized key documents linked to the 451m 'golden circle' loans from Anglo Irish Bank, the Irish Independent has learned. The loans were the primary focus of initial searches on Tuesday of Anglo's headquarters by officers acting under the direction of corporate enforcer Paul Appleby. The revelation came as the Financial Regulator, which has been conducting a separate investigation into matters at the bank, last night confirmed it uncovered matters "of such a serious nature" that they had now been referred to the gardai. The Irish Independent understands the material passed to detectives also relates to the 'golden circle' transactions , and to the movement of 7.45bn in deposits between Anglo Irish from Irish Life & Permanent to bolster Anglo's books. The disclosures gave an indication of the gathering momentum behind separate investigations by the Director of Corporate Enforcement and the Financial Regulator. Documents seized at the bank's headquarters, on St Stephen's Green in Dublin, in the two days since it was raided by fraud squad detectives were being examined last night at Mr Appleby's office, where tight security has been put in place to safeguard the material. The Government recently sanctioned a 500,000 contract to beef up security at the office on Parnell Square in Dublin in recognition of Mr Appleby's growing role in investigating alleged white-collar crime. Investigators from his office, backed up by 16 gardai from the Garda Bureau of Fraud Investigation, are expected to resume searches at Anglo Irish's headquarters this morning. Informed sources revealed the main focus of the initial searches was documentation about the so-called 'golden circle' loans in the context of possible breaches of Section 60 of the Companies Act. That section of the act bars firms from providing loans to buy their own shares, except where the money lent is "part of the ordinary business of the company". Anglo Irish loaned 451m to a group of 10 customers so they could buy a 10pc stake in the ailing bank to support its share price. The director is investigating whether that amounted to market manipulation. Under tough new EU rules, insider dealing and market manipulation are punishable by fines of up to 10m and a maximum 10-year prison term if a person is convicted. Legal and accounting sources last night said that for the loans to be put in the clear, the Director of Corporate Enforcement and Financial Regulator would need to conclude that they were made under normal commercial terms. Anglo has always insisted that before making a loan, it firstly looked at a borrower's ability to repay. It also placed a huge emphasis in the normal course of lending on getting hold of other assets belonging to a borrower as security, as well as personal guarantees that the loans would be paid back. However, this does not appear to have been the case with the 'golden circle' loans. Anglo Irish confirmed last week that 75% of what was borrowed by the 'golden circle' was only backed by the shares themselves, which are now virtually worthless. Just 25% of the total loan was backed by other collateral from the investors, meaning that they can really only be chased for 112.75m. They have already paid back 83m of the total loan, believed to have come from the sale of some Anglo shares before it was nationalised. Mr Appleby is also seeking to establish whether the loans were made in line with normal lending practice. His office will be looking to see if the bank pre-packaged the loans for the 'golden circle' or if the investors actually asked the bank to provide funding for the deal. Sources emphasised that although these loans were the initial focus of the inquiry, Mr Appleby's team will also be getting to grips with other areas, including loans to directors. Meanwhile, the Opposition went on the attack last night over the Government's failure to sanction 20 additional staff for the Director of Corporate Enforcement when he sought them in 2005. Tanaiste and Enterprise Minister Mary Coughlan admitted that it took two years for the request to be reviewed. At that stage only eight additional staff and one additional garda detective were assigned to the director. Fine Gael Enterprise spokesman Leo Varadkar claimed the revelation showed Fianna Fail had a soft stance on corporate crime. "Fianna Fail ministers have repeatedly refused requests from the Office of the Director of Corporate Enforcement for extra staff and more resources in its fight against white-collar crime," said Mr Varadkar. The Tanaiste said she would be "sympathetic to any reasonable request for additional resources" which Mr Appleby may need to complete the Anglo Irish investigation. |
Posted at 25/2/2009 12:32 by masurenguy Independent.ieWednesday February 25 2009 Top bankers face grilling after fraud squad raids By Shane Phelan, Michael Brennan and Dearbhail McDonald FORMER leading bankers at Anglo Irish are expected to be questioned by gardai after fraud squad officers raided the bank's headquarters yesterday. Senior detectives said last night it now appeared "inevitable" that some leading bankers would face questioning. This is expected to happen once an investigation led by Director of Corporate Enforcement Paul Appleby has gathered enough information about dealings at the bank. Former Anglo chairman Sean FitzPatrick last night told the Irish Independent he had "no comment" on the garda raids. Mr Appleby's investigation has already been fast-tracked after the acting Financial Regulator Mary O'Dea revealed yesterday she had agreed to share all of the information her office has gathered on Anglo Irish's dealings. Garda fraud squad officers, acting for Mr Appleby, raided three buildings at Anglo Irish's headquarters on St Stephen's Green in Dublin yesterday morning after getting warrants to search for books, documents, computer files and computer hard drives. Informed sources said investigators were looking for evidence of any breaches of the Companies Act in relation to secret loans to directors and the controversial 451m loan to a 'golden circle' to buy shares in the bank. However, they added that Mr Appleby would not exclude any other issues if evidence of illegality is uncovered. Legal experts said last night that a series of possible prosecutions could result from the investigation, including charges relating to the failure to keep proper books of account and breaches of rules relating to directors' loans. Mr Appleby can also bring charges if an individual or group financially interested in the success or failure of the bank tried to influence the bank's policy. Meanwhile, it is understood it is "highly unlikely" Sean FitzPatrick will now be compelled to appear before the Joint Oireachtas Committee on Economic Regulatory Affairs. This is due to fears that it might prejudice the ongoing investigation into Anglo Irish Bank. The committee had been planning to seek powers to compel Mr FitzPatrick to attend, after he cited legal reasons for his refusal to attend earlier this month. Anglo Irish Bank was nationalised last month after the share price plummeted amid a wave of controversies, including a loans-for-shares scandal, revelations about secret loans to former chairman Sean FitzPatrick and a multibillion-euro deposit from an apparent rival bank to boost its books. Anglo Irish officials refused to comment last night. The bank had already agreed to engage with Mr Appleby before yesterday's development and had indicated it would cooperate fully with any investigation. A team of 16 gardai joined staff from the director's office in yesterday's searches. The terms of the warrant mean they can have access to Anglo Irish's offices for a month and any material seized can be kept for an unlimited period of time. A team of 25 officers from the Financial Regulator, which is conducting a parallel investigation, were already on site. Yesterday's dramatic developments followed repeated opposition calls for the garda fraud squad to become involved. Two Fianna Fail TDs, Thomas Byrne and Michael McGrath, had also written directly to Garda Commissioner Fachtna Murphy last week to add their voices to the clamour. However, the Government had insisted that the Director of Corporate Enforcement had to be allowed to carry out his work and in the end it was Mr Appleby's decision to bring in the gardai. The director's action looks set to take some of the political pressure off the Government, who can now reassure a rebellious public that "something is being done". Justice Minister Dermot Ahern TD said the Government was operating "the rule of law. As far as I am concerned that provides that whether you have a balaclava and a sawn-off shotgun or a white collar and designer suit the same rules apply," he said. |
Posted at 16/1/2009 08:20 by masurenguy Independent.ie16th January 2009 What the implications are for savers and investors as State takes over Anglo Share By George Garvey THE nationalisation of Anglo Irish marks a further ratcheting up of the Irish banking crisis. By taking control the Government is effectively admitting that Ireland's third-largest bank has no long-term future. Below we summarise the implications. What does the nationalisation of Anglo mean for the taxpayer? At the end of September Anglo had gross assets of 101bn and a total loan book of 72bn. By nationalising Anglo the Government has nationalised Anglo's assets and liabilities also. If most of Anglo's loans turn sour then the national debt, currently 50bn, could almost triple. What does the nationalisation of Anglo mean for Ireland? The Anglo nationalisation is going to further push up the cost of borrowing. Earlier this month the Government paid a premium of 1.5% over German bond yields when it borrowed 6bn last week. With the Government set to borrow up to 20bn this year the nationalisation of Anglo is going to push up the cost of government borrowing further. What does the nationalisation of Anglo mean for the other banks? By nationalising Anglo the Government has prevented Ireland's third-largest bank from collapsing. Such a collapse would have damaged confidence in the entire Irish banking system and also threatened the stability of the other Irish banks. What does the nationalisation of Anglo mean for the bank's shareholders? Even before the Government moved to nationalise Anglo its share price had fallen to just 20c, just over 1% of its peak price of 17.60 in May 2007. By nationalising Anglo now the Government has snuffed out whatever faint hopes Anglo shareholders may have harboured of ever seeing the value of their investment recover. While the appointment of an assessor by the Government holds out some hope, in practice the best that Anglo shareholders can hope for is a couple of cents per share. What does the nationalisation of Anglo mean for bank customers? Unless you are a cash-strapped property developer or builder, probably not a lot. Anglo concentrated virtually exclusively on lending to builders and property developers, and had no retail customers. This means that the likely disappearance of Anglo will have virtually no implications for retail banking with competition in such products as current accounts, overdrafts, personal loans and credit cards likely to be largely unaffected. However, small businesses may find it harder to get loans. What does the nationalisation of Anglo mean for Anglo itself? The nationalisation of Anglo Irish almost certainly marks the final chapter in the bank's roller-coaster 45-year history. By bringing the bank into public ownership less than one month after announcing a recapitalisation package, the Government is acknowledging that things are much, much worse at Anglo than had previously been realised. With some analysts now reckoning that up a fifth of Anglo's loan book could go bad it is difficult to see how it can survive in any recognisable form and it is likely to disappear sooner rather than later. What does the nationalisation of Anglo mean for Anglo depositors? In practice most of Anglo's retail depositors have been pulling their money out of the bank in recent months with the vast bulk of its funding now coming from the wholesale markets courtesy of the Government's unconditional bank deposit and bond guarantee. Not alone does the guarantee remain in force until September 30, 2010, the position of the depositors and bond holders has been further strengthened now that Anglo has passed into state ownership. What does the nationalisation mean for the Government's bank recapitalisation scheme? Less than 4 weeks after the Government's 7.5bn bank recapitalisation was announced it has been overtaken by events. From what we now know, the 1.5bn which the Government planned to inject into Anglo is hopelessly inadequate to meet the bank's mounting losses. Will the Government have to pump more money into the other banks also? |
Posted at 16/1/2009 07:01 by masurenguy A summary of events and implications. .................... Independent.ie Friday January 16 2009 State takes over Anglo Irish Bank. Flight of depositors forced intervention By Ailish O'Hora and Joe Brennan THE Government last night dramatically took full control of disgraced lender Anglo Irish Bank. The move means the bank will now be fully owned by the taxpayer. The unprecedented decision was taken as a last-ditch attempt to rescue Anglo after a substantial number of depositors pulled their money out of it in the past number of months. The Government will put an assessor into Anglo to establish what value can be put on the institution mirroring the stance taken by the British government when it nationalised Northern Rock last year. However, there are no guarantees that existing shareholders in Anglo will receive anything following the assessment. The dramatic move came after it emerged last month that the bank had concealed loans to its former chairman Sean FitzPatrick over a period of eight years. His loans stood at 87m last September. Finance Minister Brian Lenihan rejected claims last night that there had been an outright run on Anglo. Anglo's shares will be suspended from trade in Dublin and London this morning. The move was considered the only way that the bank's continued viability could be ensured .................... What the implications are for savers and investors as State takes over Anglo Share By George Garvey THE nationalisation of Anglo Irish marks a further ratcheting up of the Irish banking crisis. By taking control the Government is effectively admitting that Ireland's third-largest bank has no long-term future. Below we summarise the implications. What does the nationalisation of Anglo mean for the taxpayer? At the end of September Anglo had gross assets of 101bn and a total loan book of 72bn. By nationalising Anglo the Government has nationalised Anglo's assets and liabilities also. If most of Anglo's loans turn sour then the national debt, currently 50bn, could almost triple. What does the nationalisation of Anglo mean for Ireland? The Anglo nationalisation is going to further push up the cost of borrowing. Earlier this month the Government paid a premium of 1.5% over German bond yields when it borrowed 6bn last week. With the Government set to borrow up to 20bn this year the nationalisation of Anglo is going to push up the cost of government borrowing further. What does the nationalisation of Anglo mean for the other banks? By nationalising Anglo the Government has prevented Ireland's third-largest bank from collapsing. Such a collapse would have damaged confidence in the entire Irish banking system and also threatened the stability of the other Irish banks. What does the nationalisation of Anglo mean for the bank's shareholders? Even before the Government moved to nationalise Anglo its share price had fallen to just 20c, just over 1% of its peak price of 17.60 in May 2007. By nationalising Anglo now the Government has snuffed out whatever faint hopes Anglo shareholders may have harboured of ever seeing the value of their investment recover. While the appointment of an assessor by the Government holds out some hope, in practice the best that Anglo shareholders can hope for is a couple of cents per share. What does the nationalisation of Anglo mean for bank customers? Unless you are a cash-strapped property developer or builder, probably not a lot. Anglo concentrated virtually exclusively on lending to builders and property developers, and had no retail customers. This means that the likely disappearance of Anglo will have virtually no implications for retail banking with competition in such products as current accounts, overdrafts, personal loans and credit cards likely to be largely unaffected. However, small businesses may find it harder to get loans. What does the nationalisation of Anglo mean for Anglo itself? The nationalisation of Anglo Irish almost certainly marks the final chapter in the bank's roller-coaster 45-year history. By bringing the bank into public ownership less than one month after announcing a recapitalisation package, the Government is acknowledging that things are much, much worse at Anglo than had previously been realised. With some analysts now reckoning that up a fifth of Anglo's loan book could go bad it is difficult to see how it can survive in any recognisable form and it is likely to disappear sooner rather than later. What does the nationalisation of Anglo mean for Anglo depositors? In practice most of Anglo's retail depositors have been pulling their money out of the bank in recent months with the vast bulk of its funding now coming from the wholesale markets courtesy of the Government's unconditional bank deposit and bond guarantee. Not alone does the guarantee remain in force until September 30, 2010, the position of the depositors and bond holders has been further strengthened now that Anglo has passed into state ownership. What does the nationalisation mean for the Government's bank recapitalisation scheme? Less than 4 weeks after the Government's 7.5bn bank recapitalisation was announced it has been overtaken by events. From what we now know, the 1.5bn which the Government planned to inject into Anglo is hopelessly inadequate to meet the bank's mounting losses. Will the Government have to pump more money into the other banks also? |
Posted at 21/12/2008 08:42 by masurenguy Independent.ie Sunday December 21 2008 State pumps 6bn into top three Irish banks By LIAM COLLINS and Daniel McConnell exclusive THE Government will pump 6bn into the three major Irish banks today as part of its recapitalisation package. The final details of the deal were being worked on late last night, but it appears that under the scheme the Government will take a 75% stake in the troubled Anglo Irish Bank for 1bn and will "underwrite" re-financing of Bank of Ireland for up to 3bn and Allied Irish Banks for 2bn. According to finance sources, the deal has to be completed before the financial markets open tomorrow morning. Sources close to the negotiations say the deal will involve senior management shake-ups at Bank of Ireland but the chief executive of AIB Eugene Sheehy will remain in his position. It is believed that the deal will involve the following: l 1bn injection into Anglo Irish Bank in return for which the Government will get a 75% stake. Anglo is the worst hit of the banks with its share price collapsing. to 35¢. On the face of it, the State is paying over the odds for its stake, as Anglo is worth just 265m at current share prices. l A 3bn share issue for Bank of Ireland will be underwritten by the Government. This means that if shareholders and other financial institutions don't take up new shares in the bank, the Government will put all or part of the money to make up the shortfall. In return for this, it will receive preference shares, which will be eventually bought back. The Government will have a say in the running of the bank. l A 2bn share issue for Allied Irish Banks -- again, this is a financial package which will see the Government buying shares in the bank if these are not taken up by existing shareholders or new stakeholders. It is believed that the Government will not be given any say in the running of Allied Irish Banks in return for this guarantee. The financial package is expected to be announced late today so that the market in bank shares cannot be manipulated. It is understood that the 1bn lifeline to Anglo Irish Bank, the worst hit of the major Irish banks because of its reliance on loans to property speculators, is a temporary measure to keep the bank afloat. The Government will send in inspectors to do due diligence on Anglo Irish to find out the state of finances at the bank. Depending on these findings, it may or may not give it a further injection of cash. Meanwhile, Finance Minister Brian Lenihan has said that he is deeply concerned with the failure of the Financial Regulator to inform him about Anglo Irish Bank's 87m loans to former chairman Sean FitzPatrick, loans which were deliberately kept hidden from view. He called on the board of the Regulator's Office to sort out the matter as soon as possible. Mr Lenihan last night refused to express confidence in Financial Regulator Patrick Neary, saying it was unacceptable that the information took so long to come to light. "It is not my job to express confidence in people. The chief executive is accountable to the board," Mr Lenihan told the Sunday Independent. "I am deeply concerned that this information only came to light when I asked about it. Clearly the board have a job to do, and must resolve this matter as soon as possible." Mr Lenihan was speaking as his Department readied itself to raid the National Pension Reserve Fund in order to capitalise Anglo Irish Bank. The National Pension Reserve Fund was set up in 2001 to meet the public sector pay bill after 2025. One per cent of the country's GDP goes into the fund every year. Most, if not all of the cash could be used in the recapitalisation. While the recapitalisation is to be announced today, it has emerged that any injection will take up to five weeks to complete. The Government's stated intention to use the National Pension Reserve Fund will require a change in the legislation amid growing concern about the huge loss in its value since the start of the year. Any bank receiving funds will also have to hold an egm to ratify the deal. Figures show that the National Pension Reserve Fund's value dropped by 17.3% to 18.7bn by the end of September and given the sizeable drops in funds on the world's markets, it is now believed to be 25% lower than where it was on January 1. .................... Ex-Anglo boss also had 7m in loans from EBS By Shane Ross Sunday December 21 2008 FORMER chairman of Anglo Irish banks Sean FitzPatrick was not merely in debt to his own bank for 87m but had also negotiated a separate loan of around 7m with the EBS building society. The Sunday Independent has learned that as recently as January this year Mr FitzPatrick was still borrowing money for residential investment properties from the EBS, long after the market had turned sour. Sources at Anglo say that their former boss had borrowed the money from the troubled EBS's specially set up Haven subsidiary , an outlet designed for their broker mortgage business The former Anglo chief is understood to have given prime investment property as security for his EBS loan. Usual lending criteria were required for this commercial property transaction with loan-to-value ratios agreed at normal levels. It is understood from Anglo Irish Bank sources that all the properties offered as security for the 7m loan were yielding normal market rents. The EBS is contemplating shutting down its Haven subsidiary at the end of the year because of doubtful debts. It was only launched in January last. News that the embattled former boss of Anglo Irish is now personally burdened with nearly 100m worth of loans comes as another blow to the man who once held nearly 80m worth of Anglo shares when the share traded at the top of the market. At Friday's closing price, however, his shares were worth less than 1.5m. Mr FitzPatrick's exit from Anglo Irish Bank on Thursday night was accompanied by his resignation from other directorships including Smurfit Kappa, Aer Lingus, Greencore and Gartmore Irish Growth Fund. His departure completed a rags-to-riches-to-ra |
Posted at 17/12/2008 15:43 by mpto low ltv assets are not the problem. A simple average tells you nothing. Look at new loans in 2006/2007 to understand size of the assets at risk. Then you need to assess level of impairment based on these. Gov is afraid its G will be called and it does not have the money, so it will entertain any solution. ANGL loans book is 70bn with a loss absorption cushion of 5bn...look at new lending in 06/07 to get a reasonable number. not posting again - the quality of this board has gone the same way as ANGL share price. Happy christmas |
Posted at 15/12/2008 08:08 by masurenguy Independent ie.Monday December 15 2008 10bn bailout is a start but we're not out of woods yet With their share prices rapidly heading towards zero, the Government has finally promised to invest up to 10bn in Irish banks. Without this, the banks would have stopped lending and the current recession would have quickly given way to a 1930s-style depression, writes George Garvey Irish bank shares are now down by an average of more than 94pc from their February 2007 peak. Over the past 22 months the combined value of the four banks whose shares are traded on the Irish Stock Exchange: AIB, Bank of Ireland, Anglo Irish and Irish Life & Permanent, has fallen from 57bn to a mere 3.3bn. Someone who had the misfortune to invest 1,000 in a basket of Irish shares in February 2007 would now have shares worth only 59. Irish bank shares are now down by an average of more than 94pc from their February 2007 peak. Over the past 22 months the combined value of the four banks whose shares are traded on the Irish Stock Exchange: AIB, Bank of Ireland, Anglo Irish and Irish Life & Permanent, has fallen from 57bn to a mere 3.3bn. So why have Irish bank share prices collapsed? Over the past decade the Irish banks went on a lending spree. By joining the euro at the beginning of 1999 the amount which the Irish banks could lend was no longer restricted by their deposits. Now the Irish banks could go out and borrow from banks throughout the eurozone and lend the money to their customers. The result was a spectacular asset price bubble funded by seemingly endless amounts of cheap credit. Over the past decade the lending of the Irish banks has grown almost seven-fold while their deposits rose three-fold. With Irish bank lending growing at more than twice the rate at which deposits were increasing, property prices tripled. Most of this new lending was secured against property, both residential mortgages and loans to builders and property developers. Since the late 1990s the proportion of Irish bank lending secured against property has grown from a little over one-third to almost two-thirds. With Irish property prices now in free fall, house prices are down by almost 15pc while commercial property values have fallen by at least a quarter, investors are worried that a large chunk of the more than 300bn of property-based loans on the books of the Irish-owned banks won't be repaid. Since the Government unconditionally guaranteed their deposits and bonds on September 30, the Irish banks have been in a kind of financial limbo. While the deposit guarantee removed the very real threat of a "run" (all of the depositors turning up at the same time to withdraw their money) on one or more of the Irish-owned banks it didn't deal with the underlying problem. This is that after 15 years of reckless and irresponsible lending to builders, property developers and homeowners, the Irish banks were to all intents and purposes bust. That is what their share prices were saying. The four Stock Exchange traded Irish banks claim to have combined core capital or shareholders funds of 22bn. As of last Friday they had a market value of just 3.3bn, an 85pc discount to their claimed shareholders funds. This gap between what the banks claim to be worth and what the markets say they are worth, almost 19bn, is the best guide to the amount of fresh capital which the Irish banks are likely to need. If we discount the equity of the EBS and Irish Nationwide, neither of whose shares are traded on the Irish Stock Exchange, by a similar percentage the amount of fresh capital required rises to about 21bn. Last night's announcement from the Department of Finance promising up to 10bn in Government cash means that almost half of the money needed to bail out the banks is now on the table. This fresh capital was desperately needed if the economy wasn't to grind to a halt. Without fresh capital the banks wouldn't have been able to make new loans and would have called in existing loans in a desperate effort to conserve cash. Indeed there were clear signs that this was already happening. When the IFSC is excluded, bank lending was virtually flat in October. Most analysts are now expecting a fall in bank lending when the November figures are published at the end of this month. This slowdown in bank lending is already making its presence felt. Businesses and consumers are finding it much, much harder to persuade their banks to lend them money. Overdrafts are being slashed, applications for car loans are being turned down while businesses are finding it impossible to roll over loans. Look around you. As nervous consumers keep their hands in their pockets retailers are having to slash their prices in the run-up to Christmas in a desperate effort to turn their stocks into cash. Things would have got much worse if the uncertainty about recapitalising the banks had dragged on into the days of January and February. We were staring economic meltdown in the face unless the banks got the fresh capital which they need to sustain their existing loan books and start making fresh loans. A good parallel is what happened in the United States between 1929 and 1933 -- 40pc of all banks failed, economic output shrank by a third and a quarter of all workers lost their jobs. If we had slipped into a 1930s-style depression it could have been well into the 2020s before things returned to normal. Fortunately that is now unlikely to happen. By pledging 10bn of the 18.6bn sitting in the National Pensions Reserve Fund, the Government has kick-started the recapitalisation of the Irish-owned banks. With the existing bank shareholders offering to stump up a further 4bn and most of the rest likely to come from private equity houses, the outlines of a bank recapitalisation are now much clearer. We're not out of the woods yet, but by promising to pump fresh capital into the banks, the Government has prevented the economic downturn from becoming much, much worse. |
Posted at 14/12/2008 13:31 by father o toole --------------------Anglo board in �10 million shares wipeout 14 December 2008 By David Clerkin, Markets Correspondent David Drumm�s estimated losses from investing in Anglo Irish Bank shares are close to the total take-home pay he received from the bank since becoming its chief executive almost four years ago, according to an analysis of Anglo directors� dealings by The Sunday Business Post. An analysis of Anglo directors� dealings shows they have spent �10.7 million between them on Anglo shares over the past 12 months. These are now valued at �500,000. Regulatory filings show Drumm spent more than �5 million on Anglo shares since becoming chief executive, increasing his holding from 77,000 shares at the date of his appointment to over 1 million shares. He spent �4 million in a single transaction in November 2007 to double his holding from 500,000 shares at a price of �7.97 per share. The collapse in the Anglo share price, which closed 98 per cent off its peak at 38 cent last Friday, has resulted in Drumm�s total holding being valued at just �380,000, a loss of �4.6 million. Anglo shares traded at 28 cent at one point last week, valuing Drumm�s holding at �280,000.He had owned shares worth �9 million at one point last year, when the Anglo share price reached its all-time high of �17.85. While figures provided by Anglo show that Drumm was paid salaries and bonuses totalling �7.9 million in the three years to September 2007, his actual take home pay would have been lower. Drumm�s losses are dwarfed by the paper losses incurred by other directors, particularly those who have been with the bank for a long time. Other directors have experienced real losses in the last year, including Declan Quilligan who spent just over �2million on Anglo shares now worth �113,000. Willie McAteer spent �1.07 million buying shares which are now worth �38,000. Outstanding loans from Anglo to its directors totalled � 41 million in September 2007, the most recent date for which directors� loan disclosures are available. This was up from �31 million in September 2006.The bank is not required to give a breakdown of its loans to individual directors. An Anglo spokeswoman declined to comment on whether Anglo had granted any loans to Drumm or any other director to buy shares in the bank. She also declined to comment on what security - such as personal guarantees or charges over individual directors� assets - the bank may have been given if loans were granted to buy shares. -------------------- � Thomas Crosbie Media, 2008 |
Posted at 14/12/2008 10:09 by masurenguy Independent.ieSunday December 14 2008 High time to move on Anglo Irish By DAN WHITE THE Government is poised to nationalise Anglo Irish Banks this weekend following intense talks on Friday with the troubled financial institution. Banking sources say that Anglo has finally realised that it needs a huge injection of cash to survive and has asked the Government to underwrite a massive rights issue. Analysts insist that the Government is far more likely to buy the bank and manage its portfolio, now valued at under 300m. With the Anglo Irish share price now down to under 40¢ and the entire Irish banking system worth just 3.3bn, recapitalisation of the six Irish-owned banks cannot be postponed for much longer. Despite the mountain of bad debts on their books, a combination of the National Pensions Reserve Fund and the main investment institutions could easily fund a recapitalisation without recourse to the private equity houses. By Friday the total value of the four quoted Irish banks, AIB, Bank of Ireland, Anglo Irish and Irish Life & Permanent, was down to just 3.3bn. This compares with their combined value of 57bn in February 2007. The 94% collapse in the value of Irish bank shares reflects the market's view that the Irish banks face massive losses on their property-based lending. While all of the Irish banks desperately need an injection of fresh capital, it is the situation at Anglo Irish which gave the most cause for concern. At Friday's 38¢ share price, the bank has a market value of just 286m. This compares with gross assets of 101bn and a loan book of 72bn. At the current share price, investors have written off Anglo's existing 4.1bn equity. So what future, if any, do the Irish-owned banks have? Would it be better if the Government allowed the banks to go under rather than throwing good money after bad? If the banks go belly-up they will take most of the economy with them. Some sort of recapitalisation will be required. The only question is what form it will take. Unless it wants to hand control of most of the Irish banking system to the private equity houses, then the Government will have to play a major part in recapitalising the banks. It can do this by raiding the 19bn National Pensions Reserve Fund. The simplest way of recapitalising the banks would be for the Government to underwrite a massive rights issue in the Irish banks. However, such a course of action is risky. For a start, two of the Irish-owned financial institutions, the Irish Nationwide and EBS are member-owned building societies and not quoted on the Stock Exchange. Secondly, it is extremely unlikely investors would have any appetite for new Anglo Irish or IL&P shares. Any recapitalisation would have to be accompanied by a massive consolidation of the Irish-owned banks. Only two Irish-owned banking groups, one based around AIB and the other around Bank of Ireland, are likely to survive the cull. Recapitalising and consolidating the banks only goes so far towards solving the problem. Any fresh capital going into Irish banks should be of two kinds. Government should subscribe for a large slug of preference shares. These shares should pay a hefty coupon. There should also be a rights issue of new ordinary shares. This twin-track recapitalisation limits the Government's downside, as the preference shares would rank ahead of the ordinary shares if any of the banks went bust and would eventually be repaid. A further benefit is that existing institutional bank shareholders would end up with a much larger stake in the banks once the preference shares were repaid. |
Posted at 20/7/2008 08:54 by father o toole THE POST.IE - Printer-friendly version PRINT STORY -------------------- Anglo gave loan to Quinn ahead of share deal 20 July 2008 By Richard Curran and David Clerkin Anglo Irish Bank agreed a loan deal with Sean Quinn secured on a significant part of Quinn's 3 billion business empire, two weeks before he announced plans to buy a 15 per cent stake in the bank, The Sunday Business Post has learned. Documents seen by this newspaper show that the Fermanagh billionaire granted Anglo a charge over shares in one of the country's biggest private business ventures. The charge was granted on June 27 and filed in the Companies Registration Office on July 9, just six days before Quinn made public his intentions regarding Anglo. A Quinn spokesman declined to comment, when asked whether Quinn had borrowed from Anglo to finance his purchase of 15 per cent of the bank. The documents do not disclose the extent of any borrowings, but the scale of the bank's security would suggest a sizeable loan. Acquiring a 15 per cent stake in Anglo would have cost approximately 500 million, based on the bank's share price early last week. Quinn is also estimated to have lost up to 1 billion after betting on the Anglo share price over the last 18 months, through the use of contracts for difference (CFDs). Banks routinely seek charges over assets, such as property or shares in a business, when granting a loan to a borrower. Such charges provide a bank with security that they may use to ensure that they get their money back, in the event of a loan going unpaid. Quinn's cement, insurance and leisure empire made profits of 750 million in just two years, and had net assets of 930 million at the end of 2006. Last year, Quinn transferred shares in the main Quinn Group company from a Northern-registered vehicle to a new entity called Quinn Group (ROI) Ltd. The Anglo charge was granted by Quinn Quarries Ltd, a small group subsidiary, on 200 preference shares it holds in Quinn Group (ROI). These shares carry the right to appoint a majority of directors to the board. Under EU rules, the Irish Financial Regulator must approve the purchase of an interest of 10 per cent or more in an Irish bank. The regulator declined to comment on the transaction. Quinn publicly disclosed for the first time last Tuesday that he had traded in Anglo CFDs, but did not quantify losses that he may have suffered on his dealings. He also announced plans to unwind his CFD interests and, together with other family members, buy close to 15 per cent of Anglo's shares. ''The family regards these shareholdings in Anglo Irish Bank as long-term holdings, with significant opportunity for capital growth over such a period," he said. A spokeswoman for Anglo said the bank does not comment on any individual shareholder transactions. |
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