Offshore savers' deposits in Anglo Irish Bank International will be fully protected as the Irish Government nationalizes its troubled parent.
The group has operations in Jersey and the Isle of Man, providing offshore personal savings products, commercial lending and corporate treasury.
Its investors will have welcomed the Government's announcement all customers of Anglo Irish Bank can be assured the full amount of their deposits and savings are safeguarded by its intervention.
Under the Isle of Man Depositors' Compensation Scheme, 100% of an individual's account balance up to the first £50,000 is guaranteed. If deposits exceed this amount, Anglo Irish Bank fully guarantees all deposits made with the Isle of Man arm. Depositors with the Jersey subsidiary are also fully guaranteed by the parent bank.
The Irish Government's decision to nationalise the bank was taken following a consultation with the Central Bank and Financial Regulator which confirmed Anglo Irish remains solvent. Shares have been suspended since yesterday morning.
The State said it will safeguard the bank's balance sheet of some €100bn and ensure its 'continued viability'.
The bank will 'be managed on an arms length basis as a commercial entity', according to the statement.
Recently appointed chairman of the board, Donal O'Connor, will continue in his role and a new board will be appointed.
"I would again stress that this Government decision safeguards the interest of the depositors of Anglo, and the stability of the economy, given the significance of Anglo in this regard, as already recognised by the European Commission," says Minister for Finance, Brian Lenihan.
The bank needed rescuing as its funding position had weakened due to 'unacceptable circumstances' causing 'serious reputational damage' at a time of negative investor sentiment.
It was hit by former chairman Sean FitzPatrick's resignation in December after failing to disclose €87m in personal loans from the bank.
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