Anglo’s Northern Rock Strategy

Matthew Elderfield’s Oireachtas appearance generated some interesting discussions about the future of Anglo Irish Bank. Alan Dukes has, on a number occasions, stated that the bank’s management are putting forward a restructuring plan that involves splitting the bank into a bad bank to be wound down over time and a good bank that will continue to operate.

Elderfield on the Anglo Split

Elderfield’s prepared comments shed some additional light on the nature of this split:

It is likely that the bulk of Anglo Irish Bank which remains after NAMA will be transformed into an asset management company to manage the bad assets of the bank. A small new bank is likely to be carved out and it is on this entity that we will apply our process.