Anglo Irish Bank

Biggles

eeja wrote: »

The huge fine massively eclipses the previous record from March this year when Fexco Stockbroking was hit with an 80,000 euro (£64,600) bill.

Don't I recall Fexco from an episode of Father Ted?

Blackdog

I have fixed rate bonds with them and had no problems. I have applied to Close Brothers fort heir 7% fix which ends Monday. Looks like the days of high interest savings are gone for a while, have to dip back in to shares!

eeja

gozomark wrote: »

I don't see why this should concern savers with AI....

Think again. He is or was their largest shareholder . See below from the Irish Independent newspaper

Probe starts into Quinn's €288m loan

• Quinn's venture was a gamble too far

Topics

• Sean Quinn
• Quinn Insurance
• Anglo Irish Bank Corporation plc
• Quinn Group

Also in National News



SearchQuery: Independent.ie WebSearch



By Maeve Sheehan

Sunday October 26 2008

THE €288m loan believed to have part-financed a disastrous stock market gamble on behalf of Ireland's richest man is to come under further scrutiny from an Oireachtas Committee.
Sean Quinn's insurance firm was fined a record €3.25m by the Financial Regulator on Friday for releasing a loan to another Quinn company which was ultimately used for stock market investments.
The financial watchdog found Quinn Insurance in breach of the rules for failing to notify the Regulator of the loans, as required under the Insurance Acts. The loan is believed to have financed a range of investments, including the Quinn family's €715m stake in Anglo Irish Bank last summer, which has taken a massive hit as a result of turmoil in the financial markets.
The nature of the loan remained under wraps this weekend. However, in a sign of unease over the transaction, the Oireachtas Committee on Economic and Regulatory Affairs is to seek more details from the Financial Regulator this week.
Michael Moriarty, the chairman of the committee, said this weekend that there were issues to be examined.
"As chairman of the committee, I am reading through the decision of the Financial Regulator to fine Quinn Insurance €3.4m for breaching the insurance regulations and we will be inquiring further into it as a committee," he said.
The Regulator issued a statement on Friday saying that it had "reasonable cause to suspect that breaches of regulatory requirements occurred in relation to Quinn Insurance".
The billionaire founder of the Quinn Group, who also had to pay a personal €200,000 fine, resigned as chairman and director of Quinn Insurance.
The Quinn Group, which is owned by the Quinn family, has taken a massive hit as a result the stock market gamble. The company has had to write off €829m on its equity investments last year, leaving the group recording a pre-tax loss of €425m.
The Quinn family's stake in Anglo Irish is now worth just €210m, according to the bank's latest share price.
On Friday, Mr Quinn said he would pay the fines and move on. He also said he was disappointed with the decision he made in "overexposing ourselves to equities".
Labour Party Finance spokesperson Joan Burton called on Brian Lenihan to make a statement. "I think that this episode needs to be explained in detail, given that the Financial Regulator has certainly regulated with a very large hand. The fact that he has made this level of fine to the company and to the individual must indicate that the matter is very serious.

- Maeve Sheehan

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gozomark

In what way is this negative for savers ?

AI have done nothing wrong

edwinac_2

Independent.ie

S&P drops grades for 'pressured' Anglo Irish

By Joe Brennan
Thursday November 06 2008

Standard & Poor's yesterday downgraded long-term ratings on Anglo Irish Bank and Irish Life & Permanent in light of the deteriorating economy.

The leading credit agency said its stance on both lenders has dropped one notch to 'A-', which ranks six levels below its top, triple-A rating. It has put both new ratings on review for a possible further downgrade.

S&P has also lowered its outlooks on Allied Irish Banks and Bank of Ireland ratings to 'negative' from 'stable'. The country's two biggest banks continue to have an 'A+' rating at the agency.

However, S&P said the four banks' debts that mature within the two-year lifespan of the Government guarantee scheme will now carry a triple-A rating -- in line with that enjoyed by the Irish State.

Deteriorating

"The lowering of the long-term ratings on Anglo and IL&P by one notch reflects the backdrop of a deteriorating economic environment and, more specifically, the clear challenges facing these banks' respective business models in their current forms," S&P said.

It added: "While banks participating in the guarantee scheme are subject to the same degree of oversight and direction by the regulator, we consider that -- of the four independent-rated banks -- Anglo and IL&P are facing the most acute pressures to re-shape their businesses in the coming two years."

All participating banks are required to submit two-year business plans to the Financial Regulator this month. S&P expects to complete its review of IL&P and Anglo within the coming weeks, when it has "a better view of the changed expectations" for the banks and their respective credit profiles.

- Joe Brennan