Belfast Telegraph

Anglo boss admits €22bn injection 'will never be seen again'

The "lion's share" of the €22bn (£18bn) being pumped into state-owned Anglo Irish Bank will "never be seen again", the bank's chief executive Mike Aynsley has admitted.

The statement came during a high-octane Oireachtas committee meeting in Dublin, at which Anglo's top brass also revealed that €550m of the loans they have transferred to the National Assets Management Agency (Nama) had been written down "to zero".

Other highlights of the meeting included predictions of further "horrendous" losses at Anglo this year, as another Nama-bound €9.5bn is written off and the bank's €35bn non-Nama loan book takes an additional hit.

Anglo chairman Alan Dukes, chief executive Mike Aynsley and chief financial officer Marteen Van Eden all made presentations to the meeting of the Oireachtas finance committee.

Anglo has already sent €9.3bn in loans in its first tranche transfer to Nama and will send another €26.3bn before the end of the year. A discount of 50% is expected across the whole debt pile.

"That money is not recoverable," Mr Aynsley said.

The Anglo trio also insisted that shutting down the bank early would not reduce the scale of losses. Anglo's preferred option - separating the bank into an 'Asset Co' or 'bad bank' that will be wound down and a trading 'Bank Co' or 'good bank' that will lend to SMEs - is the "least worst option", they argued.