with allied irish banks . anglo irish bank former type state owned founded 1964 1964 defunct 1 july 2011 2011 07 01 headquarters dublin ireland key people sean fitzpatrick former chairman alan dukes post nationalisation chairman mike aynsley post nationalisation group ceo number of employees 0 july 2011 website www.ibrc.ie anglo irish bank was an irish bank headquartered in dublin from 1964 to 2011 . 1 it began to wind down after nationalisation in 2009 . 2 in july 2011 anglo irish merged with the irish nationwide building society forming a new company named the irish bank resolution corporation . michael noonan the minister for finance stated that the name change was important in order to remove the negative international references associated with the appalling failings of both institutions and their previous managements . 3 anglo irish mainly dealt in business and commercial banking and had only a limited retail presence in the major irish cities . it also had wealth management and treasury divisions . anglo irish had operations in austria switzerland the isle of man the united kingdom and the united states . the bank s heavy exposure to property lending with most of its loan book being to builders and property developers meant that it was badly affected by the downturn in the irish property market in 2008 . 4 in december 2008 the irish government announced plans to inject 1.5 billion of capital for a 75 % stake in the bank effectively nationalising it . 5 6 the dublin and london stock exchanges immediately suspended trading in anglo irish s shares with the final closing share price of 0.22 representing a fall of over 98 % from its peak . 7 8 9 on 16 january 2009 the then taoiseach brian cowen stated that it was business as usual at anglo irish bank and people should be reassured that the bank is solvent . 10 between june and september 2009 the minister for finance provided 4 billion in capital . in a statement on 30 march 2010 a day before anglo irish bank reported its financial results the minister of finance brian lenihan announced an injection of 8.3 billion into the bank noting that a further 10 billion may be required at a later stage to cover future losses and ensure an adequate capital base . since the nationalization of anglo irish bank a number of controversies have arisen over certain business practices and loans including loans to directors and loans to people associated with brendan murtagh empg and the quinn group . on 31 march 2010 anglo irish bank reported results for the 15 months to december 2009 . losses for the period were 12.7 billion with an operating profit before impairment of 2.4 billion and an impairment charges of 15.1 billion driving the overall result . it is the largest loss in irish corporate history . 11 total assets declined to 85.2 billion at the end of 2009 from 101.3 billion in september 2008 . the european commission allowed the irish government on 10 august 2010 to temporarily grant 10 billion to anglo irish bank this included an additional 1.4 billion sought by ireland to allow the nationalised bank meet its regulatory capital requirements in light of increased costs associated with transferring loans to the national asset management agency . 12 13 in 2011 the accounts for uk savers were moved to the allied irish bank gb . 14 contents 1 nationalisation 1.1 anglo irish bank austria aiba sale 1.2 anglo & inbs merger 2 financial results 3 controversy of business practices & loans 3.1 loans to directors scandal 3.2 mainland ventures 3.3 empg loans 3.4 loans to sean quinn & the quinn group 4 history 5 see also 6 references 7 external links nationalisation edit on 15 january 2009 the government announced that it would take steps that would enable the bank to be taken into state ownership . the anglo irish bank corporation act 2009 provided for the transfer of all the shares of the bank to the minister for finance and was enacted under irish law on 21 january 2009 . on the same date the bank was re registered as a private limited company . 15 in order to protect the capital position of the bank the minister for finance provided 4 billion in capital between june and september 2009 . a liability management exercise was also undertaken in august 2009 and 1.8 billion of equity was realised on the buyback at a significant discount of subordinated debt instruments . in december 2009 the minister committed to safeguard the bank s regulatory capital position . as a result the minister issued of a promissory note for 8.3 billion on 31 march 2010 bringing the government s investment in anglo irish bank to 12.3 billion . 16 since then the notes have risen in value to cover 30.6 billion of the 34.7 billion cost of anglo irish bank and irish nationwide bank 25.3 billion of the 29.3 billion cost of anglo and 5.3 billion of inbs s 5.4 billion cost . 17 in his statement to the irish parliament on 30 march 2010 the minister for finance stated finding a long term solution for anglo irish bank is by far the biggest challenge in resolving the banking crisis . the sheer size of the bank means there are no easy or low cost options . winding up the bank is not and was never a viable option . 18 in september 2010 the government announced that it would separate the bank into two entities an asset recovery bank to manage existing loans and a separate funding bank holding deposits . 19 anglo irish bank austria aiba sale edit on 5 september 2008 a few months before being nationalized anglo irish sold its anglo irish bank austria aiba division to valartis bank . 20 anglo & inbs merger edit a transfer order was made by the high court in dublin under the credit institutions stabilisation act 2010 transferring the assets and liabilities of irish nationwide building society inbs to anglo irish bank corporation limited anglo or the bank on 1 july 2011 . this achieves the legal merger of the inbs business into anglo consistent with directions provided to both entities by the minister for finance in consultation with the european commission . 21 financial results edit on 31 march 2010 anglo irish bank reported results for the 15 months to december 2009 . loss for the period were 12.7 billion with an operating profit before impairment of 2.4 billion and an impairment charges of 15.1 billion driving the overall result . total assets declined to 85.2 billion at the end of 2009 from 101.3 billion in september 2008 . with the substantial capital investment in the bank by the government offsetting the provisions the core tier 1 and total regulatory capital were 5 billion and 8 billion respectively at the end of 2009 versus risk weighted assets of 73 billion . anglo irish bank is the largest contributor of assets to ireland s bad bank the national asset management agency . it expects to transfer loans with a nominal value of 35.6 billion to nama over 2010 which would see the risk weighted assets fall to 43 billion . in anglo irish bank s 2009 annual report referring to the quinn group and related companies it stated that the high court in ireland appointed two joint provisional administrators to a significant corporate borrower of the group . the group is closely monitoring the situation and assessing the potential implications of this development which may have a negative impact on impairment charges in 2010 . controversy of business practices & loans edit on 4 april 2010 the times described the lending practices at anglo irish bank and how these led to the nationalisation of the bank . 22 the article quotes the new ceo mike aynsley hubris played a very very big part . in many deals anglo irish bank would lend to wealthy individuals to further their equity participation . according to the ceo of ireland s the national asset management agency nama loan to value on deals was as high as 100 % . as a result the bank was totally exposed to any decline in value . in many cases anglo took personal guarantees as security . however nama attaches no value to these personal guarantees . of the 36.5 billion of loans not being transferred to nama anglo irish bank has taken a provision of 4.9 billion . 16 the article in the times notes that anglo irish bank has large exposures to entrepreneurs such as se n quinn of quinn group and barry o callaghan of empg . in both cases the bank s security was limited and largely on the men s shares in businesses . the provision of 4.9 billion compares with impaired loans of 9.5 billion at the end of december 2009 . loans to directors scandal edit main article anglo irish bank hidden loans controversy sticker on van window reacts to financial crisis chairman sean fitzpatrick ceo david drumm and board member lars bradshaw resigned in december 2008 following the revelation of a loan scandal . fitzpatrick and bradshaw had taken out loans in order to purchase anglo irish shares . from 2000 2008 fitzpatrick transferred the loans to another bank prior to year end audits thereby causing loans to directors to be understated . in 2008 the loan to fitzpatrick and bradshaw amounted to 87 million ; the transfer resulted in the accounts showing only about 40 million outstanding to directors instead of 150 million . the central bank of ireland revealed that they became aware of problems surrounding loans from anglo irish bank to fitzpatrick following an inspection earlier in 2008 . the regulator said while it does not appear that anything illegal took place in relation to these loans the central bank of ireland was of the view that the practices surrounding these loans were not appropriate . as a result we continued to monitor and investigate this and as part of this process we advised anglo irish bank to ensure that these loans are reported in the annual accounts for 2008 . 23 the financial regulator resigned in january 2009 under pressure to do so . 24 in february 2009 garda from the bureau of fraud investigation raided the offices of anglo irish bank . 25 26 in anglo irish bank s 2009 annual report it lists loans to former directors totalling 155.8 million at the end of december 2009 versus 178.7 million at the end of september 2008 . 16 whereas no provisions for impairment had been taken in september 2008 in the 2009 annual report an impairment charge of 108.9 million was reported implying a potential loss of 70 % of the value of the loans to former directors . however the total loans to directors former directors and connected persons was reported to be significantly higher at 255 million in the notes of the annual report . mainland ventures edit as of november 2009 twenty one major irish investors are suing anglo and its delaware subsidiary mainland ventures corporation for us 23 million due to fraudulent and or reckless concealment perpetrated in regards to a hotel investment fund . the outcome is pending . 27 empg loans edit on 13 january 2009 opposition party td george lee highlighted the potential exposure of the irish taxpayer to the failure of education media and publishing group the holding company of houghton mifflin harcourt given loans by anglo irish bank to investors in empg . george lee td for dublin south told journalists that empg the parent company for us publisher houghton mifflin harcourt has failed with equity investors likely to be wiped out . the irish taxpayer was exposed since anglo irish bank had loans outstanding to the shareholders of empg . 28 george lee commented 29 it