Annual Report & Accounts 2009 - Anglo Irish Bank

Legacy matters
The Bank is continuing to co-operate fully with each of
the investigations that are being carried out by external
authorities. Given the nature of these investigations it would
be inappropriate to comment further on them.
Significant disclosures in relation to Directors’ loans, including
amounts due by individual Directors and related impairment
provisions, which amounted to €155 million and €109 million
respectively, at 31 December 2009 are provided in note 55 to
the accounts.
None of the current Directors have any loans from the Bank
and the Board has decided that, in future, Directors will not be
permitted to borrow from the Bank.
Board of Directors
There has been virtually a complete change in the composition
of the Board as none of the current Directors were on the
Board prior to June 2008. As has already been announced,
I will step down from the Board in June 2010 and Alan Dukes
will succeed me as Chairman.
In line with normal practice in State owned entities, there
is only one Executive Director on the Board; the Bank’s
new Chief Executive, Mike Aynsley, who was appointed on
7 September last.
We expect to announce the appointment in the near future of
a number of additional Non-executive Directors to the Board.
I would like to acknowledge the support of my colleagues on
the Board during my tenure as Chairman and, in particular,
to thank Frank Daly, who resigned from the Board in
December 2009 to take on the chairmanship of NAMA, for his
contribution to the Bank.
Restructuring plan
In the Interim Report we noted that, having reviewed our
strategic options, a wind-down scenario, even over a lengthy
period, would be very costly to the Irish taxpayer. In the
intervening period, further extensive work has been carried out
which strongly reinforces that view.
The option that provides the best outcome for the Irish
taxpayer is for the Bank to be split into two entities:
‘old Anglo’, which will be wound down, and a ‘new bank’,
which will support the Irish economy as part of a third banking
force or as a standalone business bank. ‘Old Anglo’ will include
legacy issues, loans to former Directors, significantly impaired
loans which did not transfer to NAMA, subordinated debt and
NAMA bonds. The ‘new bank’ will include deposits, senior
debt, investments and loans not transferring to NAMA or
remaining in ‘old Anglo’. Further details of the plan, on which
the European Commission is expected to conclude over the
next few months, are provided in the Group Chief Executive’s
review.
Conclusion
On behalf of the Board I would like to thank the Minister for
Finance, his officials and the people in the Bank for their help
and support during 2009.
Many further challenges lie ahead, particularly minimising the
cost of Anglo to the taxpayer. I have every confidence that the
Board, under the chairmanship of Alan Dukes, and the new
management team, under the leadership of Chief Executive,
Mike Aynsley, will meet them successfully.
Donal O’Connor
Chairman
31 March 2010
Anglo Irish Bank
Annual Report & Accounts 2009
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