MINISTER for Finance Brian Lenihan has said he doesn’t yet know whether the Government will require legislation to split State-owned Anglo Irish Bank into funding and asset recovery banks under the 15-year wind-down plan.
Mr Lenihan said in a letter to Labour finance spokeswoman Joan Burton that the issue was being “explored” in the detailed work to develop the plan.
“It is not clear at this stage if legislation is required or whether this plan can be implemented fully within existing legislation,” he said in a letter sent last Tuesday.
“Once that detailed work is complete I will be able to assess what, if any, legislation is needed and, if it is necessary, I will obviously bring forward proposals to the Oireachtas.”
The Government unveiled plans last month to split Anglo into a funding bank, which will hold €54 billion in deposits and funding, and an asset recovery bank, which will take €38 billion in loans not being sold to the National Asset Management Agency.
Mr Lenihan said the plan is being drawn up by the bank and “the relevant State agencies, including the National Treasury Management Agency. It is hoped that this plan will be completed in the coming weeks despite the complexity of the task.”
Mr Lenihan said the Central Bank will be announcing the capital needs for the two proposed banks “soon” and “this will give some further clarity to the plan”. This announcement is expected to be made today.
The senior and junior or subordinated bonds at Anglo, estimated at about €16 billion, will be moved to the asset recovery bank.
