IRISH BANK Resolution Corporation, formerly Anglo Irish Bank, has decided to wind down the bank’s wealth management business rather than sell the division.
The bank said it had approved an orderly wind down following a “comprehensive process run by the bank to evaluate all of the alternatives available for the future direction of its wealth management business”. The business has about €2.5 billion of the bank’s loans linked to deals.
The State-owned bank weighed up whether winding down the business would be more cost-effective than a sale of the business. “IBRC remains in ongoing talks with numerous parties for the disposal of all loans in line with its deleveraging mandate,” the bank said.
The decision not to sell the business means the bank must seek ratification from Minister for Finance Michael Noonan on a High Court order he secured in April 2011 under the Credit Institutions (Stabilisation) Act 2010.
There are about 50 property funds in the wealth management business, some with several properties, which were sold through policies to Anglo customers via a separate regulated company, Anglo Irish Assurance Company.
