Joan Burton FOI 3

8/14/2019 Joan Burton FOI 3

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An Roinn A irgeadaisDep artmen t of Finance

Sraid Mhuirfean Uacht,Baile Atha Cliath 2,Eire. Dublin 2Ireland.Upper Merrion Street, Teileafon / Telephone: 353-1 676 75 71

Facsuimhir/ Facsimile: 353-1 678 9936Glao Aitiuil / LoCall: 189 0 66 10 10http://www.irlgov.ie/f inance

Ref: FOI 122/2009

3 December 2009

M s. Joan Burton TDDeputy LeaderThe Labour PartyDail EireannDublin 2

Dear Deputy B urton

I refer to the request which you m ade under the Freedom of Information Acts 1997and 2003 for records held by this Department:

...all contacts between the Minister for Finance, and/or his Departmentalofficials with officials at Anglo Irish Bank between 1st January 2007 and 15thJanuary 2009, on which date the bank was nationalised.

I refer to the appeal which you m ade under the Freedom of Information Acts 1997and 2003 for review of the earlier decision of this Department dated 28 October 2009.

I am a more senior member of the staff of this Department than was the personmak ing the first decision. I decided today to vary the original decision on y ourrequest. This d ecision on review is an entirely new and separate decision on yourrequest, and is explained as such below.

Paip^ir 100% Athchursii l tePrinted on 100% recycled paper
http://www.irlgov.ie/financehttp://www.irlgov.ie/finance


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The purp ose of this letter is to explain my decision. T his explanation h as thefollowing parts:

1. a schedule of all of the records w hich will be released to you;2. a statemen t of how you can appeal this decision should you wish to do so.

This letter addresses each of these parts in turn.

1. Schedule of recordsA sch edule is attached at the end of this letter. This schedule show s the docum entsthat this Department considers should now be released to you.

2. Access Arrangem entsYou h ave sought access to the records by means of photocopies, and I consider this anappropriate form of access in this case. Accordingly, the records described as grantedare now enclosed.

4. Rights of appealIn the event that you need to make an appeal regarding the substantive decision youcan do so by writing to the Information Com missioner at 18 Lower L eeson Street,Dublin 2. There is a fee of 150 for such appeals. If you wish to appeal, you mustusually do so not later than 6 months from the date of this notification. Should youwrite to the Information Com missioner m aking an appeal, please refer to this letter.

If an appeal is mad e by you, the Information Com missioner will fully investigate andconsider the matter and issue a fresh decision.

Yours sincerelv

Principal Officer


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Ah Roinri AirgeadaisDepa rtment of Finance

Sraid Mhuirfean Uacht, Upper Merrion Street, Teileafon / Telephone: 353-1 676 7571January 2009 B a i l e A t h a C l i a t h 2 ' D u b l i n 2 Facsuim lier/ Facsimile: 353-1 678 9936E | r e ' Ireland. Glao AitiOil / LoCall: 189 0 66 10 10

http://www.irlgou.ie/financeMr. Donal O'ConnorChairmanAnglo Irish Bank Corporation pic,Stephen Court,18/21 St Stephen's Green,Dublin 2.

Dear Mr. O'Connor,On the 21 s t December 2008, the Minister for Finance anno unced a proposedinvestment of 1.5 billion in Anglo Irish Bank pic. The investment w as to be in theform of 1.5 billion of perpetual preference shares with afixed annual dividend of10%. These preference shares were to carry 75% of the voting rights of Anglo IrishBank.Based on further consideration of all the financial circumstances and in particulartaking account of continuing negative m arket sentiment specific to Anglo Irish Bank,the Governm ent has decided not to proceed w ith the proposed recapitalisation.The Government remains committed to provide appropriate support for Anglo IrishBank. In this context could you please confirm that it is the view of the Board thatAnglo Irish Bank remains solvent and indicate that it is still the view of Anglo IrishBank that given appropriate support it wou ld rema in a viable institution in anationalisation context, and that the bank is open to this course of action.Yours sincerely

Kevin CardiffSecond Secretary
http://www.irlgou.ie/financehttp://www.irlgou.ie/finance


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Feerick, NiallFrom: Cardiff, KevinSent: 11 October 2008 20:05To: [email protected]; Horan ConSubject: PWC

Min v anxious that we have the pwc work on anglo asap so that we understand their book in d etail -sees them as most likely source of trouble, esp given sha re price movements during the wk

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mailto:[email protected]:[email protected]


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D u f f y , E o g h a n

Sent :To :Cc:

Subject :

From: Duffy, Eoghan08 January 2009 14:[email protected]@angloirishbank.ie; [email protected];[email protected]; [email protected]; Smyth, Tony; Kinsella,Sean; Mulvihill, M arie; Carrigan, AidanMeeting yesterday

Ciaran,It wa s good to mee t with you and colleagues yesterday, and very useful for us to get the insight into the ba nk's liquidityand funding operations.I have been receiving the liquidity information from yourself and your team today, and I think this will work w ell for ou rpurposes . Appreciate the time you are giving to this.Just to recap on agreed information exchanges, most of which are in train now:- Daily liquidity update reports (8am, 4pm)- Daily funding pack- Nostro cashflows- Group funding updates- Details on particular Interbank deposits as discussed- Interbank and CP costs information- Any siginificant comp etitor activity or market e vents w hich affect access to, or cost of funding- Details on developm ents in discussions w ith lenders w here chan ge of control clauses will be triggered by thegovernment recapitalisationLet me know if I missed anything, or if you have any que ries on this.Regards,Eoghan.Eoghan DuffyFinancial Services Divisi onDepartment of FinanceMerrion StreetDublin 2Phone: 604 5027
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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FOI Request Reference: 122/2009Schedule of Records: Summary of Decision Making:

RecordNo. Brief D escription & Date ofRecord File Ref: No. ofPages Decision:Grant/PartGrant/RefuseBasis ofRefusal -Section of Act

Reason forDecision Public InterestConsideration (ifapplicable)3 Em ail from Mr . Kevin Cardiff,D/Finance to M r. Patrick N eary,Office of the FinancialRegulator. 11/10/08. Subject:P WC .

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58 Email from Mr. Eoghan Duffy,D/Finance to Mr. CiaranMcArdle, A nglo Irish Bank.08/01/09. Subject: Meetingyesterday.

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83 Letter from Mr .Kevin Cardiff toMr. Donal O'Connor, Chairman,Anglo Irish Bank. 15/01/09.1

87 Email from Mr. John PaulColeman, Anglo Irish Bank toMr. Colm O'Neill, Mr. TonySmyth, Ms. Marie Mulvihill,D/Finance. 20/01/09. Subject:Perpetual Bonds not Covered bythe Guarantee. Attachment:"Note".

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Page 1 of 1

Mulvihil l , MarieFrom:Sent:To :Cc:Subject:

John Paul Coleman [[email protected]]20 January 2009 16:06O'Neill, Co lm; Smyth, Ton y; Mulvihill, MarieDavid Hanley; Russell WaidePerpetual Bonds Not Covered by the Guarantee

Attachments: Note.pdfMarie,As discussed as at the 30 t h September 2008 (last published accounts) the Bank had 2.835 billion ofperpetual bonds not guaranteed under the scheme.Th is includes the Banks GBP30 0million preference sha res (371 million at 30 t h September).Attached is thenote wh ich will be in the Banks annual accounts showing this for September. The note has both dated andundated but I have highlighted the undated (perpetual) bonds.Any additional information needed please let me know.Regards,John-Paul

John-Paul ColemanDebt Capital Markets[o h np a uj co I em a n@a ng I o r shbank. ieP +353 1616 2885F+353 1616 2461Anglo Irish Bank18/21 St. Stephen's GreenDublin 2Irelandwww.angloirishbank.ie

Private, Confidential and Privileged. This e-mail and any files and attachments transmitted with it are confidential and/or privileged. They are intendedsolely for the use of the intended recipient. The content of this e-mail and any file or attachment transmitted with it may have been changed or alteredwithout the consent of the author. If you are not the intended recipient, please note that any review, dissemination, disclosure, alteration, printing,circulation or transmission of this e-mail and/or any file or attachm ent transmitted w ith it, is prohibited and may be unlawful. If you have received thise-mail or any file or attachment transmitted with it in error please notify A nglo Irish B ank Corporation Pic, Stephen Court, 18/21 St Stephen's Green ,Dublin 2, Ireland, telephone no: +353-1-6162000.Directors: D O'Connor (Chairman), F Daly, A Dukes, D Quilligan, P Whelan.Registered Office: Stephen Court, 18/21 St Stephen's Green, D ublin 2 IrelandRegistered in Ireland: No 22045Anglo Irish Bank Corporation pic is regulated by the Financial Regulator. Anglo Irish Bank Corporation pic (trading as Anglo Irish Bank PrivateBanking) is regulated by the Financial Regulator. Anglo Irish Assurance Company Limited is regulated by the Financial Regulator.

23/02/2009
mailto:[email protected]://www.angloirishbank.ie/http://www.angloirishbank.ie/mailto:[email protected]


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Notes to the f inanc ia l s tatements cont inued

39. Other liabilities

Amounts attributable to external unitholderslinked to investment contracts (note 38)

Sundry liabilities

The Group The Bank2 0 0 8 2007 2 0 0 8 2007m m m m7 7 110 -7 9 65 77 55

156 175 77 55

40. Subordinated liabilities and other capital instrumentsThe Group

Da t ed L oan Cap i t a l750m Floating Rate Subordinated Notes 2014 (a)US$165m Subordinated Notes Series A 2015 (b)US$35m Subordinated Notes Series B 2017 (c)500m Callable Floating Rate Subordinated Notes 2016 (d)750m Callable Floating Rate Subordinated Notes 2017 (e)Unda t ed L oan Cap i t a lStg200m Step-up Callable Perpetual Capital Securities (f)Stg250m Tier One Non-Innovative Capital Securities (g)

600rn Perpetual Preferred Securities (h){ rJ &r , ' S t g 3 0 0 m Non-Cumulative PreferenceShares (Q f ^ o i ' D

Stg300m Step-up Perpetual Subordinated Notes (j)600m Fixed/Floating Perpetual Preferred Securities (k)Stg350m Fixed/Floating Perpetual Preferred Securities (I)Other subordinated liabilities

G

The Bank2 0 0 8 2007 2008 2007m m m m

72 2 749 722 74911 7 115 117 115

2 5 24 25 244 9 9 499 4 9 9 4997 4 9 749 7 4 9 749

2 6 2 2943 3 6 368 - -4 5 2 521 - -3 7 1 407 37 1 4073 8 5 424 385 4245 7 1 599 - -4 5 8 516 - -

1 9 1 94 , 9 4 8 5,274 2,869 2,976

All subordinated liabilities and other capital instruments issued by the parent Bank are unsecured andsubordinated in the right of repayment to the ordinary creditors, including depositors of the Bank. The priorapproval of the Financial Regulator in Ireland is required to redeem these issues prior to their final maturitydate.During the year the Group repurchased subordinated liabilities and other capital instruments with a nominalvalue of 94m. In addition, other subordinated liabilities of 8m matured during the year.

(a) The 750m Floating Rate Subordinated Notes 2014 bear interest at three mon th EURIBOR plus 0.45%per annum to 25 June 2009 and thereafter at three m onth EURIBOR plus 0.95% per annum.

(b) The US$165m Subordinated Notes Series A 2015 bear interest at 4.71 % per annum t o28 September 2010 and thereafter reset at three month LIBOR plus 0.92% per annum.

Joan Burton FOI 3

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