Brian Lenihan Jnr (Dublin West, Fianna Fail)

My Department is in ongoing discussions with Anglo Irish Bank on a range of matters, including the bank's capital position. The Government has stated that support will be provided as necessary to Anglo Irish Bank, consistent with EU state aid requirements. As the Deputy will be aware, Anglo Irish Bank was taken into public ownership to ensure the stability of the bank and the financial system generally on foot of serious concerns regarding corporate governance and in a context where the funding position of the bank had weakened due to low market confidence in the bank's monoline business model.

With the stability provided by full State ownership, and with a new board appointed at Anglo Irish Bank, the bank is now in a position to address the issues it faces, including the development of a revised business model, to restore market confidence. It is likely that Anglo Irish Bank will need additional capital but the extent and the timing of that need is still being assessed and discussed. Deputies will recall that prior to the nationalisation the Government had envisaged investing €1.5 billion capital in Anglo Irish Bank. In this regard, the board of Anglo Irish Bank is currently preparing a new business plan for the bank, which will be required to demonstrate how the board will oversee the operation of Anglo Irish Bank in the best interests of the State and the taxpayer.

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