September 30, 2010 / 11:02 AM / 9 years ago

Timeline: Troubles at Anglo Irish Bank

(Reuters) - Ireland put a 34 billion euros ($46 billion) price on bailing out stricken Anglo Irish Bank under a worst case scenario, prompting the government to promise on Thursday a new four-year budget plan in November.

Here is a timeline of events at the stricken bank:

March 17, 2008 - Anglo Irish Bank’s shares plunge 15 percent in what gets dubbed the “St Patrick’s Day massacre” on the Irish stock market as the first waves of the global crisis hit Ireland.

July 15 - Irish investors, the Quinn family, buy a 15 percent stake in Anglo Irish Bank.

Sept 30 - Ireland guarantees some 400 billion euros worth of liabilities of commercial banks, including Anglo Irish, to improve their access to funds frozen in the credit crunch.

December 3 - Anglo Irish posts a 34 percent fall in full-year earnings after making a 500 million euro charge for potential losses.

December 15 - Ireland says it will inject up to 10 billion euros ($13.5 billion) into financial institutions.

December 19 - Anglo Irish chairman Sean FitzPatrick and Chief Executive David Drumm resign over the transfer of 87 million euros worth of loans FitzPatrick concealed from investors for years. Donal O’Connor replaces FitzPatrick.

December 21 - The government plans to make an initial investment of 1.5 billion euros in the bank.

January 15, 2009 - Ireland nationalizes the weakened bank and abandons plan to inject 1.5 billion euros.

January 16 - Chairman Donal O’Connor says his predecessor used concealed loans for a wide range of investments calling it the “Achilles heel” of the company.

January 28 - Prime Minister Brian Cowen says Ireland may investigate transactions by the Quinn Group in Anglo Irish Bank.

— A newspaper report says that the Quinn Group had built up a stake of more than 20 percent in Anglo Irish via contracts for difference (CFDs) - which do not have to be publicly declared - and offloaded a stake of 10 percent to wealthy clients of Anglo Irish, without placing them in the market.

February 10 - Bancassurer Irish Life & Permanent says it deposited 6 billion to 7 billion euros in Anglo Irish Bank in September 2008 to provide “exceptional support” at a time when the world’s financial sector was hit badly.

February 15 - Ireland’s financial regulator denies it had known of a controversial deal under which Anglo Irish Bank had given a 300 million euro loan to ten investors - a “golden circle” - asking them to invest it in Anglo stock to prop up its share price.

February 24 - Police, including fraud investigators, carry out searches at Anglo Irish Bank.

May 29 - Ireland pours in up to 4 billion euros into Anglo Irish after bad loans pushed it to a 4.1 billion euro first-half pretax loss - the worst in the country’s banking history.

June 10 - The Irish state would be left with a bill of up to 60 billion euros if it let lender Anglo Irish Bank go bust, Prime Minister Brian Cowen says.

September 29 - Anglo Irish changes its financial year to end on December 31 instead of September 30, without providing any reasons.

March 12, 2010 - Former Irish finance minister Alan Dukes replaces Donal O’Connor as chairman of Anglo Irish Bank.

March 18 - Irish police arrest Sean FitzPatrick, the former chairman of Anglo Irish Bank, as part of a fraud investigation but he is released the next day without charge.

March 25 - Ireland may need to triple its investment in nationalized Anglo Irish Bank to 13 billion euros to keep it afloat, the bank says.

March 31 - Irish authorities win provisional approval from European Union regulators to provide an emergency recapitalization worth up to 10.44 billion euros to Anglo Irish Bank.

— The bank posts a 12.7 billion euro loss, the largest in Irish corporate history.

May 3 - The National Asset Management Agency (NAMA), a state “bad bank” scheme, begins the transfer of part of a first tranche of some 10 billion euro loans from Anglo Irish at a discount close to 55 percent.

May 7 - The bank’s new chairman says splitting Anglo Irish into a “good” and “bad” bank is the least costly option open to the state despite pressure to wind it down over time.

May 31 - Government pumps a further 2 billion euros into Anglo, part of the 10 billion euros of extra funds earmarked in March.

June 2 - Prime Minister Brian Cowen says he expects to provide more capital to the bank in 2010 on top of the 4 billion euros paid in 2009 and 10.3 billion already provided in 2010.

July 12 - Court declares former Anglo chairman Sean FitzPatrick bankrupt after he fails to repay loans to the bank.

Aug 10 - Anglo Irish wins temporary clearance from the EU for a fresh bailout of up to 10 billion euros, more than expected.

Aug 24 - Anglo Irish transfers a second batch of loans to NAMA, at a discount of 61.9 percent.

Aug 24 - Standard & Poor’s cuts Ireland’s sovereign credit rating by one notch to ‘AA-‘ citing fears of a substantially higher bill for supporting Anglo Irish and other banks.

Sept 9 - The government outlines a compromise plan to wind down Anglo via a two-way split into an Asset Recovery Bank and a Funding Bank.

— The bank’s chief executive says he expects the final bailout bill to exceed 25 billion euros.

Sept 27 - Moody’s slashes some of Anglo Irish’s debt ratings saying there is a risk Dublin might default on its lower-grade loans, causing a fall in the euro.

Sept 28 - Ireland’s borrowing costs hit a record high after two credit agencies warn its is at risk of further downgrades due to the burden of supporting banks.

Sept 30 - Ireland puts a 34 billion euros ($46 billion) price on the bank’s bailout under a worst case scenario, prompting the government to promise a new four-year budget plan in November.

Reporting by Andras Gergely

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