Anglo loses €308m on 'Golden Circle' loans
Friday, 29 May 2009 22:24
Anglo Irish Bank has written off €308m in relation to loans to ten 'longstanding clients', who then used the funds to buy shares in the bank.
The ten individuals who borrowed the money subsequently became known as the 'Golden Circle'.
The total amount of money lent to the 'Golden Circle' was €451m - but the bank may not get €308m of that money back.
This morning, Anglo Irish released results which show a €4.1bn loss for the six-month period to the end of March.
Read the report
It warned that losses could reach €7.5bn over the next three years.
The Government now plans to seek EU approval to put €4bn of State money into the bank in the coming weeks.
Anglo Irish Bank chairman Donal O'Connor admitted its lending had been imprudent and the results very disappointing.
He said total loan losses are likely to reach €7.5bn. Among those losses disclosed today €31m on loans to former directors.
Minister for Finance Brian Lenihan confirmed that up to €4bn of State money would be invested to recapitalise the bank.
He said winding up Anglo, the third biggest bank in the country, was not an option.
Minister Lenihan said the priority has been to stabilise the bank.
The results show deposits from businesses in Anglo dropped by almost €9bn after nationalisation.
- Six One News: David Murphy, Business Correspondent, reports that it is the biggest loss in Irish corporate history
- Nine News: David Murphy, Business Correspondent, reports that today the bank announced the biggest loss in Irish corporate history
- One News: Donal O'Connor, Anglo Irish Bank, & Brian Lenihan, Minister for Finance, react to the bank's results
- One News: Conor Mark Kavanagh reports that the Director of Corporate Enforcement has said he expects to be engaging with the DPP over investigations into Anglo Irish Bank
- One News: David Murphy, Business Editor, reports that the Anglo Irish Bank issued its results today
- News At One: David Murphy, Business Editor, speaks to Anglo Irish Bank Executive Chairman Donal O'Connor and Brian Lenihan, Minister for Finance, about the bank's losses
- News At One: Banking specialist Professor Patrick Honohan, of Trinity College Dublin, discusses the bank's results while David Murphy brings further analysis
