Commission criticism of Anglo plan 'worrying'

Finance Minister Brian Lenihan is under pressure to explain what the Government intends to do with Anglo Irish Bank after the European Commission expressed concern about the bank's business plan.

Management at Anglo want to split the institution into a 'good bank', which would be kept open for new lending, and a 'bad bank' which would be wound down.

But the EC has expressed concern about Anglo's claim that by 2014 the bank can return to the levels of profit it was making during the boom.

Fine Gael's new finance spokesman Michael Noonan said the criticism by the Commission is worrying.

"Anglo's business plan is to get the bank back to where it was at the top of the Celtic Tiger," Deputy Noonan said.

"I think even the man on the street knows that the model for a growing economy in Ireland is not to go back to the property bubble.

"And a set of assumptions that are based on extravagant property prices returning is a very worrying model for Anglo Irish Bank."