Can anyone outline the probable thought process of those within Anglo who approved this?
Writing off about 100million loan for a company which is performing and saleable seems like poor banking sense to me but I know nothing about this.
Off the top of my head:
We can't put this in receivership because it will destroy "enterprise value"
We can't put this in receivership because it will lead to termination of contracts and thus destroy "enterprise value"
We can't decapitate existing management because its vital to sew them up in a non-compete clause or they'll set up again and take all the contacts with them.
Its a huge call. And an Aynsely call. He can't hide behind an underling on this. If he isn't hired to make the right call on this sort of stuff, then what the f**k is he for?
What I really want to know is did anyone leak out what the banks internal provisioning against this loan was?
Because the way Irish bankers think is so small minded as long as they're "fully provided" they don't mind a big loss, but even if a situation is terrible they won't realise a loss until they've "got their provisions right"