The documents reveal that the Financial Regulator tipped off Britain that Anglo might be “unable to roll €3bn [in funding] overnight,” but not to worry as if that happened the Central Bank or Government would step in to bail it out.
An internal email entitled ‘Iceland and Ireland’ and dated September 29, 2008, states that Britain’s Financial Service Authority was “most concerned about Anglo Irish”.
“The FSA talked to the Irish regulator today, who also share concern on the heavy reliance the bank [Anglo] has on corporate deposits,” the email, released under Britain’s Freedom of Information Act, states.
“The Irish regulator is in close contact with the firm. If the liquidity conditions worsened for them, and if they were unable to roll €3bn overnight, then they would have to access liquidity from the Central Bank or government,” the documents state.
Ireland’s Financial Regulator insisted to Britain that Anglo is “not seen as standing out from the others [AIB, Bank of Ireland, etc]”.
The Central Bank’s fears about Anglo do not seem to have reached Minister for Finance Brian Lenihan until much later in the day on September 29.
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