Irish authorities looking to wind down Anglo-Irish bank

Irish finance Minister Brian Lenihan is this week expected to put forward a plan to the European Union for a ten-year wind down of troubled financial operation Anglo-Irish bank. This is the bank which was effectively bailed out by Irish taxpayers and has so far cost the Irish population around €25 billion. However, the government believes that now is the time to effectively disband the bank and it will look to put forward a ten-year plan over the next few days.

In order to try and maintain as much confidence in the Irish economy, and the Irish financial system, the government will offer a guarantee to all deposits held with Anglo-Irish bank regardless of their size. There had been plans to effectively "do a Northern Rock" by splitting the operation into a good bank and a bad bank but it looks as though the authorities have rejected this plan in favour of a straightforward wind down of the business.

It is believed that pressure from the European Union may well have contributed to the proposed ten-year wind down with many believing that the "bank does not deserve to survive". The initial feedback and rumours from the European Union suggest that a ten-year wind down plan could well be waved through fairly quickly.