The promised “restructuring” of Anglo Irish Bank and Irish Nationwide Building Society (INBS) can now begin after a A High Court order was made today (Feb 8th 2011) permitting an auction of deposits and assets in both of the financial institutions.
The auction will result in the deposits and assets in both institutions being transferred to another institution. Eventually Anglo Irish and the INBS will be merged into a smaller government controlled bank.
The deposits at deposits at Anglo Irish are about €14 billion and about €4 billion at Irish Nationwide . These will still be covered by existing Government guarantees
Irish Nationwide said ” Customer deposits remain fully secure, our branch network remains open and customers should continue to transact as normal. ”
The Dept of Finance said that INBS and Anglo branches and call centres are expected to continue to operate as normal . INBS and Anglo will set out any transitional arrangements that will apply following any transfer of the deposits and assets in both institutions.
Mortgages – The Court Order in respect of INBS does not affect the mortgage assets of INBS. Any mortgage loan a person has with INBS is not affected. Anglo Irish did not do residential mortgages.
Jobs – Anglo Irish has around 1,200 staff and Irish Nationwide about 440 – job losses are to be expected in the regionof 200.