Dáil Éireann Debate, Thursday - 30 September 2010
32 Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to reports (details supplied) that Anglo Irish Bank disposed of its Austrian private banking subsidiary, with a deposit book of some €600 million, at a time in September 2008 when Anglo’s own funding position was under such strain; if he has had cause to have this matter investigated. [34057/10]
View answerThe Deputy will be aware that the particulars of the disposal of the Austrian subsidiary were disclosed in the Notes to the 2009 Annual Reports & Accounts. Note 14 to these accounts (page 75) provides details on the transaction, including a sales figure of €141m for the disposal and a profit of €49m. The note also indicates that the Bank provided the purchaser with a €24 million long term subordinated loan to part fund the purchase. A reference was also made to the transaction on page 59 of the Accounts (Segmental Reporting) and page 16 (Business Review).
This sale obviously took place prior to the nationalisation of the bank. However, the bank has advised that the particular private banking business was not a core activity of the bank, was not particularly profitable and that there was a significant operational risk running the operation at a distance. The bank feels it important to point out that the bank did keep a branch in Austria. I am informed that there is nothing in the records of the bank or the nature or timing of the transaction to suggest that the sale of the subsidiary was other than the normal course of business.
If the Deputy has any specific information which indicates further investigation is warranted she should of course bring this information to the attention of the appropriate authorities.
