Anglo, new ‘Bad bank / Bad bad bank’ plan

We are anaesthetized from outrage at this point when it comes to Anglo Irish Bank (or if you are a eurosceptic who doesn’t understand acronyms such as Ambrose Evans-Pricktard we are talking about ‘AIB’).

The latests announcement is that Anglo will be split into a deposit only bank and an asset recovery bank, both of which will be fully legal regulated entities. Let us be the first to congratulate the Minister of Finance for being the only singular individual who owns a bank in Ireland (two lines under the heading ‘resolution proposal’ it says “It will be a stand-alone, regulated bank, completely separated from Anglo’s loan assets and it will be owned directly by the Minister for Finance.”

Fascinating given that for anybody else you can’t have a single owner (see Central Bank: Licensing and Supervision Requirements and Standards …

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