The chairman-designate of Anglo Irish Bank, Alan Dukes, has said that winding the bank down would cost much more than keeping it afloat.
Speaking on RTÉ Radio, Mr Dukes estimated that closing Anglo would cost the taxpayer more than €20 billion.
He said he believed Anglo-Irish could become a viable business bank, which could, in the future, be refloated 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.
Earlier, the chairman of Anglo Irish Bank, Donal O'Connor, formally announced he will retire from the position at the end of June.
A statement from the bank said that former Fine Gael leader Alan Dukes will succeed him. Mr Dukes is currently the government-appointed non-executive director at the bank and is also chairman of its remuneration and nomination and succession committees.
'With the scale of the bank about to be significantly reduced through the transfer of assets to NAMA, with a major cost reduction programme well advanced, with the restructuring plan having been submitted to the EU, and most importantly, with a new senior management team in place, the bank is now in a position that allows me to move on,' Mr O'Connor said.
'Many further challenges lie ahead but I have every confidence that the board and the new management team, under the leadership of CEO Mike Aynsley, will meet them successfully,' he added.
More Anglo board appointments to be made soon
Finance Minister Brian Lenihan has thanked Mr O'Connor for his work as Chairman and Executive Chairman of Anglo Irish Bank 'at a time of great challenge for the bank and the financial system generally'.
'Mr O'Connor has worked tirelessly to help stabilise the bank and introduce a new management team to lead it in the future. He also instigated the restructuring plan that was submitted to the EU Commission last year,' Mr Lenihan said.
He also said that he will make further appointments to the Anglo Irish Bank board 'in the near future'.
