The  Anglo Irish bank results provide further proof, if such were needed, that  this  bank  was operating in a grossly irresponsible, they contradict the  views  put  forward  by  political  commentators  about  NAMA and also demonstrate  the  necessity  to bring the various investigations into Anglo and its operations to a speedy conclusion” Roche.

Commenting  on  the publication of the half yearly results from Anglo Irish Bank  Minister  for European affairs, Dick Roche said “the Anglo Irish Bank results  provide  further  proof,  if  such were needed, that this bank was operating in a grossly irresponsible, the figures also contradict the views put  forward  by political commentators about NAMA and they demonstrate the necessity to bring the various investigations into Anglo and its operations to a speedy conclusion.”

Primarily,  the losses reflect the reckless behaviour that existed in Irish banking  prior  to  2008  and  the  nationalisation of the bank. They again

demonstrate  that prior to its nationalisation this bank was operating in a grossly irresponsible manner.

The   results   also   demonstrate  the  necessity  to  bring  the  various investigations  into Anglo and its operations to a speedy conclusion and to bring  any  of those who were involved in any actions that broke the law or appear to have done so before the courts to answer for their actions.

There  is  an understandable concern amongst taxpayers that any banker that is  regarded  as  breaching the law should be brought to book sooner rather than later.

The  results also reflect a very severe write down on Anglo assets that are being  transferred  to  NAMA.  Contrary to what political critics said when NAMA  was being established the Anglo figures demonstrate clearly that NAMA is  no soft bail out of bankers, builders or developers. These figures make it clear that there were no ‘sweetheart’ deals.

The  ‘haircut’  or write down on the value of loans transferring to NAMA is far  more  severe  than  commentators  suggested. This highlights the tough valuation  process  that  is  being  applied  by  NAMA  to  loans  from all institutions  transferring  to  NAMA  in  order  to  protect the taxpayers’ interest.

The  results  inevitably  bring  the future of Anglo to the fore. They also demonstrate the danger of ‘quick fix’ solutions.

The  results  show  that  as  at  30th June 2010 the bank held customer and interbank deposits of €56.5bn. It is important that these are protected not least to minimise the cost of Anglo to the State and to the taxpayer of any future developments of Anglo.

At present the Central Bank in conjunction with the Financial Regulator and the NTMA are in discussions with the EU Commission concerning the future of Anglo. A variety of options are being explored.

This  work is complex. It cannot be resolved overnight.  Professor Honohan, the  Governor  of the Central Bank and the author of one of the key reports on  the collapse in Irish Banking summarised the position, saying finding a solution  will  “inevitably  take  some time, given the long-term nature of many of its assets.”

All  possible  options  must be explored.  The overriding objective however must  be  to  select  the option that can be delivered at least cost to the State and the taxpayer.