Following the announcement yesterday by the European Commission, of the approval of the restructuring plans of Anglo Irish Bank (“Anglo”) and Irish Nationwide Building Society (INBS), the Irish Department of Finance has today announced that INBS’s assets and liabilities will be transferred to Anglo and the new entity is to have a new name. The DoF announcement doesn’t actually mention the new entity’s name but the press reports that it is to be the Irish Banking Resolution Corporation or IBRC. This merged entity has so far cost the Irish taxpayer €34.7bn and may cost more as the €40bn-odd of loans in the merged entity are worked out over the next number of years. IBRC doesn’t hold deposits and will be providing no new lending save in pursuance of existing loan agreements.
We may be waiting some time to see the detail of the full European Commission decision but you might wryly smile at the claim in the press release that the restructured entity has appropriately burden-shared with stakeholders.
(Graphic above produced by Japlandic.com, with other examples of artwork available here)
UPDATE: 15th October, 2011. The BBC reports that the new entity, IBRC, is now a reality following the merger of Anglo and INBS. A statement from the newly-named old entity states “with effect from 14 October 2011, the name of Anglo Irish Bank Corporation Limited has been changed to Irish Bank Resolution Corporation Limited (trading as IBRC). IBRC is an asset recovery bank which is committed to working out the Bank’s operations over time in accordance with directions given to the Bank consistent with our EC approved restructuring plan. The objectives of Bank’s Board and senior management team is to run the Bank in the public interest and in a manner that maximises return to our Shareholder and the Irish state whilst also treating customers and creditors fairly.” Despite the new name, the fact that it is a bank in name only, the Irish state will continue to repay €3.5bn approximately of senior unsecured unguaranteed bonds in the merged unit, one of the most significant of which is the USD 1bn (€721m) bond repayable on 2nd November, 2011.
NAMA Wine Lake 
Irish Nationwide, is to be taken over by Anglo Irish Bank and renamed the Irish Bank Resolution Corporation following a High Court application by Minister for Finance Michael Noonan.
This is a completely ambiguous and unwarranted title. Is the “Irish Bank Resolution Corporation” going to perform many of the following functions suggested n its title. Enforcement decisions and orders, further merger decisions, risk management and securitisation. Is it going to see the implementation of the Basel accord? These catch all titles are mere grabs for power. Who authorised this silly title?
Hi Namawinelake,
Firstly, thanks for your ongoing great coverage of the deposit flight.
Minor comment …
Your comment that “IBRC doesn’t hold deposits” is not correct.
Anglo, post AIB deposit migration, still held deposits.
INBS, post IL&P deposit migration, still held deposits.
Anglo/INBS, or IBRC as it will soon be known, holds deposits.
Not all deposits from Anglo and INBS were or will be transferred to AIB or IL&P.
For example, click on this link http://www.angloirishbank.ie/Personal_Savings/ then click “existing Anglo Accounts (non Transferred)” to see which former Anglo accounts are still maintained by IBRC. There are a number of deposit accounts, and they all offer different rates to the new AIB Direct (former Anglo) deposit rates.
@Ciaran, thanks for that. I was echoing what Minister Noonan said in Washington three weeks ago (see below). I suppose there might be some deposits retained which are associated with legacy loans so that a customer’s assets and liabilities are in one place, but can’t think whwta else Anglo would be holding onto..
“It’s a warehouse for impaired assets. Its deposit base has been moved out into the pillar banks. And it doesn’t work as a bank anymore. You can’t put your money on deposit in Anglo Irish. You can’t get a loan from Anglo ”
http://www.rte.ie/news/2011/0615/noonan2-business.html