Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 81: To ask the Minister for Finance if a draft legislative proposal for the nationalisation of Anglo Irish Bank was prepared by officials in his Department in September 2008; and if he will make a statement on the matter. [3940/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

In the context of the difficulties in international financial markets which developed in August 2007 and continued thereafter it was prudent to prepare contingency legislative provisions to address scenarios that might develop. The preparation of contingency legislative provisions to nationalise a credit institution consequently formed an important part of the planning work undertaken by my Department. Financial stability contingency planning intensified during September 2008 when the extent and intensity of the upheavals in international financial markets deepened. The contingency legislative provisions available to the Government when the guarantee was announced did not relate to any specific credit institution.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 82: To ask the Minister for Finance the tier 2 capital securities on Anglo Irish Bank's balance sheet; if, following nationalisation of the Anglo Irish Bank, these securities are available to absorb future losses in the event of a wind-up of the bank, thereby minimising the taxpayer's exposure; and if he will make a statement on the matter. [3941/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

As I have previously indicated, the Government will ensure Anglo's continued viability. Anglo is a going concern and all securities will remain as obligations of the bank.

Tier 2 capital consists of Lower Tier II and Upper Tier II. All of Anglo's Lower Tier II securities are dated subordinated debt and are covered by the current Bank Guarantee Scheme. Anglo does however have Upper Tier II perpetual bonds and in the event of a wind up of Anglo, these perpetual bonds are available to absorb future losses as they are outside the Government Guarantee and they rank junior to senior creditors but senior to equity.

I would also refer the Deputy to Anglo's Annual Accounts which provide a more detailed breakdown of the various securities in issue by Anglo. These Accounts are available on Anglo's website.