Ruling could cost banks €460m

The IBRC special liquidator’s decision not to challenge a ruling by Justice Briggs in London could end up costing Irish pillar banks hundreds of millions of euro.

The original ruling found that IBRC had acted illegally in forcing Assénagon to write down the value of its €17m in Anglo Irish bonds to just €170. The bond buyback programme had been announced as part of the Government’s promise to burn bondholders and was known as a liability management exercise (LME).

Documents obtained by the Irish Examiner under the Freedom of Information Act show that Irish banks have a total exposure of €460m to subordinated bondholders as a result of the ruling being allowed to stand.