Anglo Irish Bank Corporation Bill 2009
Encyclopedia
The Anglo Irish Bank Corporation Act 2009 is a piece of emergency legislation composed by the Irish government in January 2009. The Act provides for the emergency nationalisation
of Anglo Irish Bank
which had been subject to a controversy regarding hidden loans
in December 2008. It was voted through Dáil Éireann
, being approved by 79 – 67 before passing in Seanad Éireann
without a vote on 20 January 2009. President
Mary McAleese
then signed the Anglo Irish Bank Bill at Áras an Uachtaráin
on 21 January 2009. The bank's shares had decreased dramatically on the stock exchange in previous days. Anglo Irish Bank has 7,000 loan customers, of whom 5,000 are Irish.
and Labour
both voted against the legislation, citing a lack of clarity in the Government's proposals. Labour TD Pat Rabbitte
regretted that the Dáil did not have the time to debate the matter properly, whilst the party's financial spokesman Joan Burton
said there was a failure on the part of the Government to provide any relevant information about the financial situation of the bank. Minister for Finance
Brian Lenihan
said during the debate that Ireland's two other main banks, Allied Irish Banks
(AIB) and Bank of Ireland
, would not be nationalised despite they too enduring major falls in their share prices. He said the Government would instead stand by to inject up to €2 billion of public money into AIB and Bank of Ireland.
claimed that "no-one was being told the truth about Anglo Irish Bank" and called an Emergency General Meeting of shareholders which had taken place the previous Friday "a disgrace, show[ing] corporate Ireland at its worst, as there were no answers to any questions". Independent Senator Joe O'Toole
advocated the chasing of those responsible for the bank's nationalisation "even into the courts", saying that a person could be imprisoned for failure to pay a household bill, yet those who caused the loss of jobs and pensions might not.
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
of Anglo Irish Bank
Anglo Irish Bank
Anglo Irish Bank was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011. It went into wind-down mode after nationalisation in 2009....
which had been subject to a controversy regarding hidden loans
Anglo Irish Bank hidden loans controversy
The Anglo Irish Bank hidden loans controversy began in the Republic of Ireland in December 2008 when the chairman of Anglo Irish Bank, Ireland's third largest bank, admitted he had hidden a total of €87 million in loans from the bank, triggering a series of incidents which led to the eventual...
in December 2008. It was voted through Dáil Éireann
Dáil Éireann
Dáil Éireann is the lower house, but principal chamber, of the Oireachtas , which also includes the President of Ireland and Seanad Éireann . It is directly elected at least once in every five years under the system of proportional representation by means of the single transferable vote...
, being approved by 79 – 67 before passing in Seanad Éireann
Seanad Éireann
Seanad Éireann is the upper house of the Oireachtas , which also comprises the President of Ireland and Dáil Éireann . It is commonly called the Seanad or Senate and its members Senators or Seanadóirí . Unlike Dáil Éireann, it is not directly elected but consists of a mixture of members chosen by...
without a vote on 20 January 2009. President
President of Ireland
The President of Ireland is the head of state of Ireland. The President is usually directly elected by the people for seven years, and can be elected for a maximum of two terms. The presidency is largely a ceremonial office, but the President does exercise certain limited powers with absolute...
Mary McAleese
Mary McAleese
Mary Patricia McAleese served as the eighth President of Ireland from 1997 to 2011. She was the second female president and was first elected in 1997 succeeding Mary Robinson, making McAleese the world's first woman to succeed another as president. She was re-elected unopposed for a second term in...
then signed the Anglo Irish Bank Bill at Áras an Uachtaráin
Áras an Uachtaráin
Áras an Uachtaráin , formerly the Viceregal Lodge, is the official residence of the President of Ireland. It is located in the Phoenix Park on the northside of Dublin.-Origins:...
on 21 January 2009. The bank's shares had decreased dramatically on the stock exchange in previous days. Anglo Irish Bank has 7,000 loan customers, of whom 5,000 are Irish.
Dáil debate
The debate in Dáil Éireann lasted five hours and the bill was passed by 79 – 67. Opposition parties Fine GaelFine Gael
Fine Gael is a centre-right to centrist political party in the Republic of Ireland. It is the single largest party in Ireland in the Oireachtas, in local government, and in terms of Members of the European Parliament. The party has a membership of over 35,000...
and Labour
Labour Party (Ireland)
The Labour Party is a social-democratic political party in the Republic of Ireland. The Labour Party was founded in 1912 in Clonmel, County Tipperary, by James Connolly, James Larkin and William X. O'Brien as the political wing of the Irish Trade Union Congress. Unlike the other main Irish...
both voted against the legislation, citing a lack of clarity in the Government's proposals. Labour TD Pat Rabbitte
Pat Rabbitte
Pat Rabbitte is an Irish Labour Party politician who has been Minister for Communications, Energy and Natural Resources since March 2011...
regretted that the Dáil did not have the time to debate the matter properly, whilst the party's financial spokesman Joan Burton
Joan Burton
Joan Burton is an Irish Labour Party politician and the current Minister for Social Protection. She is a Teachta Dála for the Dublin West constituency....
said there was a failure on the part of the Government to provide any relevant information about the financial situation of the bank. Minister for Finance
Minister for Finance (Ireland)
The Minister for Finance is the title held by the Irish government minister responsible for all financial and monetary matters. The office-holder controls the Department of Finance and is considered one of the most important members of the Government of Ireland.The current Minister for Finance is...
Brian Lenihan
Brian Lenihan, Jnr
Brian Joseph Lenihan was an Irish Fianna Fáil politician and barrister who served in the government of Ireland as Minister for Justice, Equality and Law Reform from 2007 to 2008 and as Minister for Finance from 2008 to 2011...
said during the debate that Ireland's two other main banks, Allied Irish Banks
Allied Irish Banks
Allied Irish Banks p.l.c. is a major commercial bank based in Ireland.AIB is one of the so called "big four" commercial banks in the state. The bank has one of the largest branch networks in Ireland; only Bank of Ireland fully rivals it. AIB offers a full range of personal and corporate banking...
(AIB) and Bank of Ireland
Bank of Ireland
The Bank of Ireland is a commercial bank operation in Ireland, which is one of the 'Big Four' in both parts of the island.Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish banking history...
, would not be nationalised despite they too enduring major falls in their share prices. He said the Government would instead stand by to inject up to €2 billion of public money into AIB and Bank of Ireland.
Seanad debate
The bill passed through Seanad Éireann without a vote; however there was a debate on the matter. During the Seanad's debate on the bill, Senator Shane RossShane Ross
Shane Peter Nathaniel Ross is an independent Irish politician and Business Editor of the Sunday Independent. He was the longest-serving member of Seanad Éireann , until he was elected to Dáil Éireann for the constituency of Dublin South at the 2011 general election.-Early life and career:Born in...
claimed that "no-one was being told the truth about Anglo Irish Bank" and called an Emergency General Meeting of shareholders which had taken place the previous Friday "a disgrace, show[ing] corporate Ireland at its worst, as there were no answers to any questions". Independent Senator Joe O'Toole
Joe O'Toole
Joseph John "Joe" O'Toole is a former Irish independent politician, who was a member of Seanad Éireann from 1987 to 2011.He was born and brought up in Dingle, County Kerry, O'Toole was a teacher for ten years and then a school principal in County Dublin...
advocated the chasing of those responsible for the bank's nationalisation "even into the courts", saying that a person could be imprisoned for failure to pay a household bill, yet those who caused the loss of jobs and pensions might not.
External links
- Anglo Irish Bank Corporation Bill from the Government of Ireland