Anglo Irish Bank chairman-designate Alan Dukes has said that winding the bank down would cost much more than keeping it afloat.

Mr Dukes, who is currently a non-executive director at the bank, estimated that closing Anglo would cost the taxpayer more than €20bn.

He said he believed Anglo-Irish could become a viable business bank, which could, in the future, be re-floated into the private sector with a net gain for the taxpayer.

He added that there would be a need for further redundancies at the bank later this year.

Current Anglo Irish Bank chairman Donal O'Connor formally announced earlier today that he will retire from the position at the end of June.