Ireland, home to one of the world’s biggest banking implosions, is now the scene of a skirmish between lenders and regulators that offers a warning to the European Central Bank as it conducts its own probe into the region’s balance sheets.
Lone Star Funds, a U.S. private- equity firm, won an auction to purchase almost all of the former Anglo Irish Bank Corp.’s 6.3 billion-pound ($10.5 billion) U.K. loan book, two people with knowledge of the matter said.
Ireland’s National Asset Management Agency, the nation’s bad bank, plans to make a first optional interest payment on its riskiest securities as the outlook for its commercial real-estate assets improves, according to a person with knowledge of the matter.
Liam Boggan used to spend Sunday evenings traipsing to Dublin airport to catch the 9:10 p.m. flight to London for his job at State Street Corp. As Ireland recovers from recession, his commute is now 600 miles shorter.
Allied Irish Banks Plc, which needed a 21 billion-euro ($28.7 billion) taxpayer bailout, has approached the government about setting up an incentive plan to retain top executives before the government starts selling the lender, according to three people with knowledge of the matter.
Irish Prime Minister Enda Kenny said his aim is become the first leader of his party to win two successive elections after clearing up an “unholy mess” in the economy he inherited from the previous government.