THE report details the sheer scale of loans to directors. In the single trading year running until the end of last September, Anglo Irish Bank lent its own directors E255million. The amount is six times the previous year's figure and at a quarter of a billion euro to its own board, is a simply staggering sum. So far, these loans have not been officially 'impaired', the technical moment at which the bank admits they expect losses. Anglo has said that this could happen as soon as the end of March. A total of E179million is outstanding in loans to directors.
WHAT NEXT? Will Brian Lenihan pursue the Anglo directors for every cent he can possibly reclaim or will the loans be written off against the taxpayer?
THE GOLDEN CIRCLE
THE Government had warned during the week that the names of the 'Golden Circle' would not be included in yesterday's report. These are the ten people who were lent E451million to buy Anglo Irish shares, in an effort to prop up the share price of the bank last autumn. The group have seen the value of the shares wiped out. What yesterday's report did reveal is that they are liable for only a quarter of the sum, or about E113million between the ten of them. The rest looks set to be written off against the taxpayer. Yet the report does not explain what led to this extraordinary arrangement. Nor does it detail how the 'Golden Circle' were selected, let alone whether there was any Government involvement, something Ministers have virulently denied.
WHAT NEXT? Apart from the crucial question of whether the Government will name those responsible, will those involved be pursued for the full value of the E113million?
ONE detail revealed yesterday is an extraordinary payment made to a former Anglo Irish director. Tom Browne left the bank's board in November 2007. The report states that he was awarded E3.75million at the time 'in recognition of his contribution to the group'.
WHAT NEXT? Why was so unusual an award made to a departing director of the bank and just what was the 'contribution to the bank' that justifies so large a pay-off?
RESIGNED Anglo Irish CEO David Drumm has already attracted a lot of attention for the size of his pay, which the report puts at about E2.2million for the trading year of 2008 alone. Now attention is turning to his pension pot as well. In 2006 the Government changed the rules about tax relief for pensions, placing a E5million cap on the value of accumulated pension payments that could be set against tax. In response, Anglo Irish changed its own rules, allowing executives affected by the move to take cash payments instead - a change that benefitted only one member of staff, namely Mr Drumm. Yesterday's report says this practice has been ended.
WHAT NEXT? Who approved of changing the bank's rules to benefit a single member of staff and do the authorities believe this was a form of tax avoidance?
THE disgraced former Chairman of Anglo Irish is stated to personally owe the bank E83million for his share of the directors' loans. The report also adds that these are 'full recourse loans', meaning that Mr FitzPatrick can be pursued not only for the collateral he put up when taking on the loans, but for everything else he owns as well. Yet the report does not go into specifics with the man most profoundly identified with the bank through the Celtic Tiger years, his role in overseeing practices that may even prove criminal, or discuss whether his efforts to keep his directors' loans off the books each year are themselves a breach of the law.
WHAT NEXT? Will the Government as the owner of Anglo Irish ensure that it will treat Sean FitzPatrick's loans as they would any others, down to the letter of the law?
THE IRISH LIFE AND PERMANENT LOAN
ONE of the biggest scandals to hit Anglo was the so-called 'back-toback' loan involving Irish Life & Permanent. Essentially, Anglo Irish lent IL& P several billion euro that immediately came back into Anglo Irish as deposits, fraudulently falsifying the bank's accounts. These transactions have profoundly damaged not only the international reputation of Anglo Irish Bank but of Ireland as a country as well. It has been hoped that the report would explain how this happened and detail the legal situation, specifically whether a crime was committed. Instead, there are only a few glancing references to 'reputational risk'.
WHAT NEXT? Who authorised these loans and will anyone ever be charged for their involvement?
Since Anglo Irish was nationalised last month, every citizen of the State has become an owner of the bank. All taxpayers are liable for future losses. The bank acknowledges that almost k1billion worth of loans are 'impaired' or in trouble. Alarmingly, another k1.4billion, while not 'impaired', is already overdue. Experts expect that figure to grow further.
WHAT NEXT?Just how many billions can the taxpayer expect to lose on the bank's bad debts?