Bank split in two but final bill unknown

THE Government has unveiled its plan to deal with Anglo Irish Bank but still can’t say what the final cost to taxpayers will be.

Amid growing political and economic pressure, the Cabinet has agreed to split Anglo into two separate entities – a “funding”, or savings bank, which will retain its deposits and an “asset recovery bank”, which will run down its loans over time.

The “Anglo” brand will be consigned to the dustbin, with the two banks given different names. But both banks will require capital upon their establishment – meaning the estimated €24 billion bill to taxpayers could increase even further.