Ireland’s bad bank hired receivers to some companies controlled by Garrett Kelleher, a developer who borrowed from the nation’s lenders for a building spree that was to include North America’s tallest building in Chicago.
Bank of Ireland Plc fell in Dublin trading after Moody’s Investors Service said the nation’s lenders’ balance sheets face credit and capital risks as they head into European Central Bank stress tests this year.
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.
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.
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.
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.