Anglo chief says bailout to reach €25bn-28.5bn

[grumpy]

Anglo chief says bailout to reach €25bn-28.5bn

SIMON CARSWELL

ANGLO IRISH Bank chief executive Mike Aynsley has said he expects the final cost of the bank bailout to be “somewhere between” €25 billion and €28.5 billion under Government’s wind-down plan.

The bank’s earlier estimate of a further €3.5 billion cost – on top of the current cost of €25 billion – for a 10-year wind-down could not be applied to the Government’s plan as Anglo had costed a wind-down under a different scenario, he said.

“I suspect we are going to have a result somewhere in between,” he said. He has said that the current expected cost of €25 billion was “a pretty good estimate”.

He could not reconcile the cost of €35 billion estimated by credit ratings agency Standard Poor’s last month, given the bank’s assessment of potential losses, he said.

This estimate involved “some pretty severe stress scenarios” on the bank’s loans overall, he said.

irishtimes.com/newspaper/fin … 38695.html

Creeping ever upwards