Bank ‘has multi-billion euro buffer to protect taxpayer’

FINANCE Minister Brian Lenihan insisted Anglo Irish Bank had a multi-billion euro buffer to protect the taxpayer from its debts as he took sweeping powers over the scandal-hit institution.

The minister will be able to appoint key staff and direct the lender’s actions as emergency legislation to nationalise it was rushed through the Oireachtas. Measures intended to force depositors with more than €20m in the bank to keep the money on account were missing from the final draft after a U-turn.

Sections 18 to 20 provide powers that allow the minister take “swift action” to make necessary changes in the administration of the bank. These “provide for the removal and appointment of directors, officers and employees from their positions with Anglo Irish Bank and its subsidiaries, and the appointment of their replacements. These powers... are subject to regulatory requirements.”