AN ORDERLY wind-down of Anglo Irish Bank over a lengthy period has emerged as the favoured option of most Ministers.
The Cabinet had a lengthy discussion on the future of Anglo yesterday, and said in a statement afterwards that it was united in its determination that the issue should be resolved at the least cost to the taxpayer in a way that gives finality.
“The Government is working with the EU authorities to that end; it is also in active discussion with the EU Commission about the future of the bank guarantee,” added the statement.
Government sources said later that a wind-down had now become the more likely option, while the good bank/bad bank solution favoured by the bank itself had dropped down the scale.
Minister for Finance Brian Lenihan will travel to Brussels for a routine meeting with his fellow EU finance ministers on Monday, and the issue of Anglo is expected to feature in discussions.
A final decision on the fate of the bank will depend on the view taken by the European Commission and the European Central Bank on the issue.
In recent days, Fianna Fáil and Green Party Ministers gave conflicting signals about the desirability of a rapid wind-up of Anglo.
However, Ministers from both parties yesterday insisted they were united on the issue.
Most of yesterday’s Cabinet meeting was taken up with a briefing from Mr Lenihan on the situation at Anglo and the progress of the discussions with the European Commission about its future.
Speaking to journalists after the meeting, Mr Lenihan said he would be visiting Europe next week for discussions with the European authorities, from whom the Government has had tremendous support. Europe has stood firmly behind the Irish banking system, he said, and the difficulties in Anglo needed to be addressed and resolved in co-operation with the European authorities.
Asked about whether any Cabinet colleagues had expressed concern about events related to Anglo that had arisen in recent weeks, Mr Lenihan said they were all concerned as a Government about any threats to Ireland’s fiscal position and about the appalling cost which Anglo has inflicted on the State.
He said their common purpose was to reduce that cost to the taxpayer, and there was no rift and complete unity of purpose in the Government.
He said he was satisfied he had the confidence of his colleagues in this matter.
Minister for Justice Dermot Ahern also denied there was any split with his coalition partners on the issue.
This is despite the fact that Green Party chairman Senator Dan Boyle had called for an early wind-down of the bank over a period of five years or less.
On his way into the meeting, Green Party Minister for Communications, Energy and Natural Resources Eamon Ryan insisted that his party was not at odds with Fianna Fáil despite Mr Boyle’s comments.
He said that while his party had a view that the sooner the wind-down happened the better, the Government agreed that costs should be minimised. Mr Ryan said a quick solution was better for the country.
The Department of Finance has argued consistently that a lengthy wind-down will be the least expensive solution for the exchequer.
