Anglo may transfer only €10bn of loans to new bank

Anglo Irish Bank's Chief Executive has said he hopes plans to split the company into a good and bad bank will be operational by the end of the year.

Chief Executive of the Bank Mike Anysley said Anglo is sifting through its loan portfolio to assess which loans are suitable for inclusion in the new bank - BankCo.

He said detailed discussions with the European Commission are continuing and he hoped to have received approval in September.

It has also emerged that just €10bn out of the €70bn of Anglo's loans may be worth transferring to the new bank.