Under the proposals, the remains of Irish Nationwide left after the transfer of loans to the National Asset Management Agency will be merged with the rump of Anglo. The deposit books of both transferred out to improve the funding of other parts of the domestic banking system.
Deposits at both institutions – estimated at less than €14 billion at Anglo and about €4 billion at Irish Nationwide – will remain guaranteed by the Government.
Deposits are still guaranteed, and as you can see http://www.askaboutmoney.com/showthread.php?t=102329Only 73%? I find it hard to believe that 27% of Anglo deposit holders have kept their cash in Anglo after all that has happened.
Fine Gael have announced if elected they will shut down INBS. My mortgage is with them, am I right in assuming that it would just be transferred to say EBS. If so , would my current agreed fix rate with INBS still hold or would I be at the mercy of variable rates?
IMPORTANT NOTICE FOR CUSTOMERS
8 FEBRUARY 2011
Irish Nationwide Building Society has today received instruction from the High Court in the form of a Direction Order, enabling the National Treasury Management Agency (NTMA) to:
begin a process, in accordance with State aid rules, to transfer deposits and assets held by Irish Nationwide Building Society to a third-party financial institution; and
take the initial steps to implement the restructuring plan for INBS as submitted to the European Commission for approval at the end of January this year.
This order facilitates the Minister’s plan to restructure INBS which is in accordance with the provisions of the EU/IMF Programme of Financial Support for Ireland.
The Direction Order was granted under the Credit Institutions (Stabilisation) Act 2010.
Deposit Auction process
The NTMA will immediately commence an Auction process to invite interested, fully regulated financial institutions to tender for the INBS deposits. It is intended that this Auction process will conclude as quickly as possible. Further information will be provided to customers following successful completion of the transfer.
Deposit Security
Deposits will be transferred in a seamless manner and no action will be required by depositors. It should be noted that the position of depositors in INBS remains fully secure and that any transfer will take place, and be accepted by, another institution on the basis of the existing terms and conditions. Depositors will also continue to have full access to their funds during and after the Auction process in line with existing terms and conditions.
Restructuring Plan
The initial steps to implement the Restructuring Plan will involve making preparations for the orderly work out, in a manner which minimises losses, of the INBS loan book. It will also involve the combination of Anglo and INBS, into a merged entity regulated by the Central Bank of Ireland.
The Direction Order enables and affords the necessary legal protection to INBS to commence the process of restructuring as envisaged in the restructuring plan.
Staff
The position of employees within INBS that will be affected by the transfer will be safeguarded in accordance with applicable employment legislation.
Commenting on the Direction Order, Gerry McGinn, Chief Executive said, “Today Irish Nationwide received direction from the High Court which provides further clarity on the future of the Society and the Government’s planned restructure of the banking system. We acknowledge the continued support of the State and will comply fully with the Direction Order. Customer deposits remain fully secure, our branch network remains open and customers should continue to transact as normal.”
Customers who wish to find out more about today’s announcement should visit the INBS website www.irishnationwide.ie. Further information on today’s announcement can also be found on the Department of Finance website www.finance.gov.ie
Press Statement:
www.finance.gov.ie/viewdoc.asp?DocID=6685
Frequently Asked Questions
www.finance.gov.ie/documents/pressreleases/2011/bl174append.pdf
Anglo Irish Bank Corporation Limited
Statement by Anglo Irish Bank Corporation Limited
Anglo Irish Bank Corporation Limited (Anglo) has today (8th February 2011) received a Direction Order from the High Court to;
(i) Begin a process, in accordance with EU State aid rules, to transfer deposits and assets held by Anglo to a third-party financial institution or institutions; and
(ii) Take the initial steps to implement the restructuring plan as submitted to the European Commission at the end of January this year.
This Order facilitates the Minister’s plan to restructure Anglo, which is in accordance with the provisions of the EU/IMF Programme of Financial Support for Ireland.
The Direction Order was granted under the Credit Institutions (Stabilisation) Act 2010.
Auction process
The NTMA will immediately commence an auction process to invite interested, fully- regulated financial institutions to tender for Anglo’s deposits. It is intended that this process will conclude as quickly as possible.
Restructuring Plan
The initial steps to implement the restructuring plan will involve the deposit transfer process described above and the preparation of Anglo’s loan book for its orderly work out, in a manner which minimises losses. The process will also involve the amalgamation of Anglo and Irish Nationwide Business Society (INBS) into a merged entity regulated by the Central Bank of Ireland, subject to EC approval of the Restructuring Plan. The Direction Order begins the process of restructuring Anglo as envisaged in the restructuring plan in a manner that benefits from necessary legal protections and is recognised in other EU Member States.
Depositors
Deposits will be transferred in a seamless manner and no action will be required by depositors. It should be noted that the position of depositors in Anglo remains fully secure and that any transfer will take place and be accepted by another institution on the basis of the existing terms and conditions. Depositors will also continue to have full access to their funds during and after the auction process.
Staff
The position of employees in the business areas of Anglo that will be affected by the transfer of deposits and assets will be safeguarded in accordance with applicable employment legislation. Commenting on the Direction Order, Mike Aynsley, Chief Executive Officer of Anglo said: ‘Today’s High Court Direction Order is the first step taken by the Minister for Finance in relation to the restructuring of our Bank. It is a necessary step in enabling the possibility of a wider restructure of the banking sector to happen. The Board and I welcome today’s Direction Order which brings further clarity about the future of the Bank. We acknowledge the continued support of the State and will comply fully with the Direction Order.’
Ends
For further information, please contact:
Billy Murphy / Martha Kavanagh
Drury
Tel: 01 260 5000
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INBS not taking any new biz applications, any submitted already will still be dealt with
The Irish Banking Officials Association told the Guardian it was concerned desperately needed Irish cash would now go abroad.
Larry Broderick, general secretary of the IBOA, said: "My biggest concern would be that they would let these go to a hedge fund or a foreign institution. That would not be good for Ireland Inc.
"If the deposits and assets are redistributed among the Irish banks it would have an enormous potential to stabilise the Irish banks and to protect more jobs."
Today it transpired that the auction is not taking place on a pure open market anyway.
Only those who signed a non-disclosure-agreement by Monday – the day before the court hearing – will be able to bid for the Anglo and INBS loot.
Letters went to out to credit institutions "licensed by the Irish Central Bank" last week advising them of the imminent opportunity to buy the deposits.
The list of licensed institutions according to the viewable central bank's register, includes everything from exotic outfits such as the Philippine National Bank (Europe) and the Piraeus Bank to more familiar names such as Rothschild, Morgan Stanley and Lloyds.