An emergency of banking and of law: The resolution of Anglo Irish Bank

Lefeuvre, Élise; McCarthy, Jonathan

An emergency of banking and of law: The resolution of Anglo Irish Bank

Files

1. Resolution of Anglo Irish Bank (1).pdf(418.33 KB)

Date

2023

Authors

Lefeuvre, Élise

McCarthy, Jonathan

Publisher

Irish Judicial Studies Journal

Abstract

The bank guarantee night and the fall of Anglo Irish Bank are landmarks of modern Irish history. The impact goes beyond Irish politics and economy. The example of Anglo Irish Bank represents a unique case of banking resolution with wide financial and legal implications which still resonate at EU level. In order to demonstrate the effects of the resolution, this article investigates the recapitalisation, the nationalisation, the merger, and the liquidation of Anglo Irish Bank. The analysis of debates, legislation, judgments, and banks’ financial statements allows for an understanding of how the resolution worked and why it was controversial. A central argument of this article is that recapitalisation succeeded in containing the scale of the Irish banking crisis, despite the significant costs, and that recapitalisation should therefore be treated as a relevant option for future banking resolution. The nationalisation, merger, and liquidation measures were equally necessary in restructuring the Irish banking sector. The article argues the merits of public resolution, especially as the State is able to impose measures swiftly in the best interests of the economy.

Keywords

Anglo Irish Bank , Resolution , Recapitalisation , Nationalisation , Merger , Liquidation

Citation

Lefeuvre, E. and McCarthy, J. (2023) 'An emergency of banking and of law: The resolution of Anglo Irish Bank', Irish Judicial Studies Journal, 7(1), pp. 1-25. Available at: https://www.ijsj.ie/editions/2023-edition-1/ (Accessed: 4 April 2023)