Gilmore calls for Anglo to be wound down

LABOUR LEADER Eamon Gilmore has repeated his call for an orderly wind-down of Anglo Irish Bank. Mr Gilmore said that in March, Minister for Finance Brian Lenihan had told the Dáil that the Government was providing €8.3 billion of taxpayers’ money to recapitalise Anglo Irish Bank.

“That was in addition to the €4 billion that had already been committed to that bank in 2009. This week, just two months on, the Minister for Finance announced yet another €2 billion of taxpayers’ money for Anglo Irish Bank, bringing to €14.3 billion the total amount of taxpayers’ money that has now been committed to Anglo Irish Bank.”

Mr Gilmore asked what the “bottom of the pit” was as far as the bank was concerned. “How much more will be paid over or committed to this bank?”

Taoiseach Brian Cowen said the €2 billion capital injection was in line with what was expected might arise from the transfer of the first tranche of the bank’s loans into the National Asset Management Agency (Nama) and was approved by the European Commission on that basis at the end of March.

“Without this capital injection, Anglo Irish Bank would not meet its regulatory capital requirements and would need to be immediately wound down,” he added. “That would mean a fire sale of assets and capital losses of at least €40 billion to the State.”

In addition, Mr Cowen said, the State would have to provide in the order of €70 billion in cash up front to meet the deposits, bond-holders and liabilities due to the euro system.

Mr Gilmore said it was extraordinary that there appeared to be two types of language when they talked about taxpayers’ money.

“When we talk about money needed for schools, special needs assistants, pensioners, those on social welfare and pay for employees of the State, this country is broke and there is no money for them.

“When we come to talk about the money that is going into Anglo Irish Bank, we talk about billions as if it were monopoly money and did not matter.”

Mr Cowen said the situation concerned the whole banking system “and the deputy’s continued position that no guarantee should have been given on September 29th would have meant the collapse of the Irish banking system”.

He added: “The next position taken by the deputy and which is shared by Fine Gael . . . was that the Anglo Irish Bank should be wound down immediately.” Mr Gilmore said he had called for an orderly wind-down of the bank.