Anglo-Irish Bank to be split up
Nationalised Anglo-Irish Bank is to be split up, the Government has confirmed.
The state-owned bank - 8.2 billion euro in the red and in need of a potential 25 billion euro bail-out - will be divided in two with one wing holding deposits and the other dedicated to managing good loans which will be run down over time.
The new bank divisions will not lend money.
Finance minister Brian Lenihan, who spent the last two days in tough talks with European Commission chiefs and European counterparts, said the move should help restore confidence in the financial system.
"Today's decision by the Government will provide certainty about the future of Anglo-Irish Bank," he said.
"Resolution of this, our most distressed institution, is essential to the promotion of confidence and stability in our financial system."