Anglo Irish Bank to receive government bail-out
Anglo Irish Bank is to receive a government cash injection after it reported massive half-year losses of £3.6 billion.
Irish finance minister Brian Lenihan, who nationalised the troubled lender in January after a string of scandals, said the results for the six months to April were extremely disappointing but its problems are being addressed.
Executive chairman Donal O’Connor blamed lending blunders for the losses and said the past six months were very difficult for the bank.
Mr Lenihan said the Irish government has decided, subject to EU approval, to provide up to £3.5 billion of capital to Anglo. He said the government’s main priority was to protect the £56 billion of deposits Anglo holds, and said total losses were likely to reach £6.6 billion.
Anglo said the losses were primarily driven by lending impairment charges of £3.5 billion.