Anglo Irish Bank Chairman Resigns

Chairman Resigns not because bank has lost 98% of its value in the last year but because of shady accounting practices

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Chairman of Anglo Irish Bank Sean Fitzpatrick has stepped down tonight in a controversy surrounding directors' loans.

In a statement Mr Fitzpatrick he said he had made his decision “in the best interests of the bank and all its stakeholders”. He said his decision related to loans he had with the bank totalling €87 million “which will be included in the annual report for 2008 in the note relating to Directors’ Loans.”

“This balance is substantially higher than in the 2007 report because in prior years I had temporarily transferred my loans to another bank before each year end. I had done this on my own initiative over an eight year period,” the statement said.

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This does not break banking rules which makes me wonder what sort of rules do they have?

One down, lots more to go.

I would've thought the performance of the bank was enough to get him (and the other Chairmen to go) but €87m in loans?!

Presumably it's only come out now as he invested the loans in property with Bernie MadeOff or some other kaput investment that means he can't repay.

The Irish banking chiefs have the brassest of all the brassnecks but the end us almost nigh for a couple...

I can't understand how shuffling 87m of loans off the books just before the annual accounts is not illegal? What possible reason could he have to do if but to hide Director loans?

I guess he can't find another bank willing to loan him 87m for a few weeks in the current circumstances.

Anglo Irish Board & Minister "disappointed". :rolleyes:

CEO gone now.

Apperently the Financial Regulator discovered the loans. Possibly the only pro-active thing they've ever managed to do...

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Originally Posted by OneRedArmy

CEO gone now.

Apperently the Financial Regulator discovered the loans. Possibly the only pro-active thing they've ever managed to do...

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It only took them 8 years. :mad:

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Originally Posted by OneRedArmy

Apperently the Financial Regulator discovered the loans.

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I would guess they have been looking at the books since the end of year accounts. Given Anglos market capitalisation E87m arriving on the books would stand out.

Irish Nationwide rumoured to be the place where the bank loans were (in father Ted manner) resting. (i.e. hiding)

Now the Financial Regulator seems to have discovered its role in Irish banking doubt this will be the end of these incidents.

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Originally Posted by pete

I would guess they have been looking at the books since the end of year accounts. Given Anglos market capitalisation E87m arriving on the books would stand out.

Irish Nationwide rumoured to be the place where the bank loans were (in father Ted manner) resting. (i.e. hiding)

Now the Financial Regulator seems to have discovered its role in Irish banking doubt this will be the end of these incidents.

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E87m is nothing in the context of Anglo's balance sheet. The market cap is irrelevant.

I'd say its more likely to have been a response to a questionnaire on Directors dealings.

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Originally Posted by OneRedArmy

I'd say its more likely to have been a response to a questionnaire on Directors dealings.

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Seems the Regulator knew about this since earlier this year. As he did not act on can only assume he felt actions were appropriate.

Still mindboggling why the Government bailed Anglo out.

They are a property bank with no small depositors, therefore the contagion risk was minimal.

Surely cutting them out of the deal (and forcing them to be taken over) would have been the right thing to do?

Its not like they have any basis for doing business going forward as all they know is property financing which is so passe at this stage.

If I see another comment like that made by Noelys Guitar the ban will be instant and permanent, and I'll make no effort to protect the identity of those that make them. It's just asking to get me and yourself sued. If you have evidence, post it; if you don't, shut your f*cking mouth.

Noelys Guitar suspended 1 week.

adam

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Originally Posted by OneRedArmy

Surely cutting them out of the deal (and forcing them to be taken over) would have been the right thing to do?

Its not like they have any basis for doing business going forward as all they know is property financing which is so passe at this stage.

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Too many bankers and property developers know where too many FF bodies are buried. Why would they force the bankers to get tough with their paymasters?

Dahamsta, I believe you could do a good job in the office of the finance regulator :)

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Originally Posted by OneRedArmy

Still mindboggling why the Government bailed Anglo out.

They are a property bank with no small depositors, therefore the contagion risk was minimal.

Surely cutting them out of the deal (and forcing them to be taken over) would have been the right thing to do?

Its not like they have any basis for doing business going forward as all they know is property financing which is so passe at this stage.

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My brother's studying business, so he's reading a lot about this sort of thing. He told me that if Anglo went under, the government's exposure was €40 billion. I'm not sure I believe the figure (must ask him where he got it), but it does seem that it'd have been expensive to see them die.

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Originally Posted by John83

He told me that if Anglo went under, the government's exposure was €40 billion. I'm not sure I believe the figure (must ask him where he got it), but it does seem that it'd have been expensive to see them die.

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Could be true, as the longer it goes on, the more ridiculous the guarantee looks. What was the market value of all the banks at close of play Friday? If we're guarantying debts, putting in capital, why not just feckin nationalise rather than this continued farce?

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Originally Posted by John83

My brother's studying business, so he's reading a lot about this sort of thing. He told me that if Anglo went under, the government's exposure was €40 billion. I'm not sure I believe the figure (must ask him where he got it), but it does seem that it'd have been expensive to see them die.

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Thats possibly the gross amount of inter-bank lending and other deposits the Government has guaranteed.

But that assumes that their loans are worth zero! Fair enough, they have taken a big general provision, but their loanbook is collateralised and means the net exposure is a lot less than this.

In any case, you would transfer the assets and liabilities either to the Govt balance sheet or two one of the other banks, and make sure the equity holders take the first hit, as they are supposed to.

Although given the share price, they are pretty close to being completely wiped out anyway.

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Originally Posted by geysir

Dahamsta, I believe you could do a good job in the office of the finance regulator :)

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Yeah, but in comparative terms, so would Bosco.

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Originally Posted by Macy

Could be true, as the longer it goes on, the more ridiculous the guarantee looks...

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Just checked with him. He thinks the figure was from Davy Stockbrokers. I've been away, so I didn't know the gov't backed all deposits - I thought it was still just the first €100k. Figure seems more likely knowing that now. :(