Anglo Irish Bank Corporation Limited –Transfer Order
Today, 24 February 2011, under powers granted by the Credit Institutions (Stabilisation) Act 2010, the Minister for Finance, in consultation with the Central Bank of Ireland, announced the immediate transfer of the majority of the Irish and UK deposits and certain NAMA bonds (with the exception of certain excluded liabilities) from Anglo Irish Bank Corporation Limited (‘Anglo’ or ‘the Bank’) to Allied Irish Banks p.l.c. The Transfer Order was made by the Irish High Court and facilitates the Minister’s plan to restructure the Bank.
This announcement follows on from the Direction Order made by the High Court on 8 February 2011, which directed the NTMA to begin a process, in accordance with State aid rules, to transfer deposits and assets held by the Bank to a third-party financial institution or institutions.
From 24 February 2011, the legal effect of the transfer is that the vast majority of customer deposit accounts held with Anglo branches in Ireland are now held with Allied Irish Banks p.l.c. and in the case of the U.K. are now held with its subsidiary AIB Group (UK) p.l.c.
Anglo Irish Bank Corporation (International) PLC in the Isle of Man has been transferred to Allied Irish Banks p.l.c. by way of a share sale with the consent as required, of the Financial Supervision Commission in the Isle of Man.
Deposits introduced through Anglo branches in Vienna, Dusseldorf and Jersey remain unaffected by the Transfer Order and as such have not been transferred.
In branches impacted by the deposit transfer, deposits have been transferred to Allied Irish Banks p.l.c. with no immediate operational impact on customers. Anglo will continue to supply support services to Allied Irish Banks p.l.c. until the operational aspects of the transfer process have been completed. Depositors continue to have access to their funds as normal.
The existing position of depositors remains fully secure and Allied Irish Banks p.l.c. will maintain the existing Anglo deposit terms and conditions. Transferred deposits will benefit from the Irish Deposit Protection Scheme which covers amounts up to €100k per depositor and, where applicable, the Irish Eligible Liabilities Guarantee Scheme which covers amounts over €100k.
AIB Group (UK) p.l.c. is a member of the UK Financial Services Compensation Scheme. This provides eligible customers a guarantee of up to £85,000, in addition to the protection provided, where applicable, by the Eligible Liabilities Guarantee Scheme.
In the next few days Customers will be informed by letter how this announcement impacts their deposit accounts.
Under the terms of the Transfer Order, certain Anglo Irish Bank employees associated with the deposit business have automatically transferred to Allied Irish Banks p.l.c. with their terms and conditions of employment safeguarded in accordance with applicable employment legislation.
Commenting on the Transfer Order, Mike Aynsley, Group Chief Executive of Anglo said: “We are working closely with Allied Irish Banks p.l.c. to ensure the transfer of deposits. The existing terms and conditions applying to the deposits will be maintained following the transfer and depositors will continue to have the same level of protection.”
More information about today’s announcement can be found on Anglo’s website at www.angloirishbank.com.
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Related Links
Statement from Department of Finance on Transfer Order
Transfer Order FAQs from Department of Finance
Statement from Allied Irish Bank on Transfer Order
Statement from Central Bank of Ireland on Transfer Order
Statement from NTMA on Transfer Order