As previously outlined to the Deputy in my answer to Parliamentary Question No. 108 on 16 June 2016, Anglo Irish Bank was nationalised on 15 January 2009 and on that date the Minister for Finance acquired all of the ordinary and preference share capital by virtue of the provisions of the Anglo Irish Bank Act 2009, therefore, as of that date, the ownership of the shares in Anglo Irish Bank would have transferred to the Minister for Finance. If the Government had not nationalised Anglo Irish Bank, the Bank had the potential to collapse and impact on the entire Irish banking system. At that time, shares were valued on the market in the region of €0.22. However in the event of the bank failing, Anglo Irish Bank's shares would have been worthless.
Sections 22-32 of the Anglo Irish Bank Corporation Act 2009 provide that the Minister for Finance shall appoint an Assessor at an appropriate time having regard to the public interest. The job of the Assessor is to independently determine the fair and reasonable aggregate value, if any, of the transferred shares and extinguished rights and the consequent amount of compensation, if any, that may be payable to persons in respect of Anglo Irish Bank shares transferred and rights extinguished under the Act. Since the liquidation of IBRC in February 2013, there has been no timeframe set for the appointment of an Assessor.
An update on the liquidation of IBRC can be found at http://www.finance.gov.ie/sites/default/files/Progress%20update%20report_31%20Dec%202015_0.pdf.
The Deposit Guarantee Scheme ("DGS") was established to protect depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits. The DGS is part of the Central Bank of Ireland's strategy to ensure that the best interests of consumers of financial services are protected. The DGS is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme. The DGS was not established to protect equity investors.
