EU calls for major restructuring of Anglo Irish Bank, approves aid for Allied Irish Bank
By Aw, APWednesday, March 31, 2010
EU calls for overhaul of Anglo Irish Bank
BRUSSELS — European Union regulators say they are investigating Irish government help for property lender Anglo Irish Bank, warning that the bank has to draw up a new business plan and “restructure profoundly.”
The European Commission meanwhile approved Ireland’s emergency capitalizations of up to euro10.44 billion ($14.08 billion) for Allied Irish Bank and euro2.7 billion for Irish Nationwide Building Society to shore up their financial stability.
AIB and INBS will have to hand in restructuring plans by June 22, according to a Wednesday statement.
Ireland’s government said Tuesday it will help banks raise nearly euro22 billion ($30 billion), much of it from taxpayers, to meet stiff new capital requirements that are part of a plan to resolve the nation’s banking crisis.
