Regulator did not formally clear €169m loan to Quinn

THE €169 million loan from Anglo Irish Bank to fund Seán Quinn’s 15% purchase of its shares in 2008, which is the subject of a criminal investigation, was not formally approved by the Financial Regulator.

It is understood that after Anglo agreed the loan with Quinn, the Financial Regulator subsequently instructed the bank to deduct the amount of the loan from its capital base.

In the letter the regulator said “it considers it appropriate that Anglo take a deduction from Total Own Funds for the full amount of €169m for solvency purposes until such time as this facility is refinanced”.