Let's hope those clients don't include any Irish depositors who might owe money to Anglo, to other struggling Irish banks or to the Irish taxpayer.

Austrian Banking: Low Profile, Professional And Very Secret

The foundation for these joint ventures are solid relationships with Austria’s commercial banks, of which Bank Austria is the largest. But behind the retail counter, up the back stairs, and behind locked doors are the thriving private banking departments of Austria’s banks.

Why consider Austria for banking at all with neighbouring Switzerland beckoning? While Switzerland is a larger and much-better known private banking center, Austria’s banking tradition is itself more than 200 years old. Accounts and securities investments are available in all major markets and currencies. Austrian banks offer an impressive range of services: the ability to purchase foreign currencies and CDs, offshore stocks and bonds and options, precious metals, and (particularly for non-U.S. persons) offshore funds. In other words, you’ll find the same capabilities at Austrian banks as in Switzerland, but with somewhat lower fees and with a much lower profile.

There’s just one catch—most of Austria’s private banking departments cater to investors in Austria and other German-speaking countries. But there’s one bank—Anglo-Irish Bank in Vienna—that caters to an international, English-speaking clientele.

All Austrian banks are subject to Austria’s bank secrecy laws—some of the world’s most stringent. The practical consequence is that the small army of professional asset trackers, information brokers and corporate espionage specialists which advertise their ability to uncover assets in U.S. bank and securities accounts will be completely thwarted if they try to pry information out of an Austrian bank.

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Banks in Austria were used to launder about 2 billion euros ($A3 billion) for the Italian mafia between 2005 and 2007, the Austrian weekly profil reports, citing Rome prosecutors.
According to prosecution documents, the money was laundered through 14 accounts at Raiffeisen Zentralbank, Bank Austria - which now belongs to Italy's UniCredit Group - and the Austrian branch of Anglo Irish Bank, profil said on Sunday.
The transfers were performed by Italian internet provider Fastweb and Telecom Italia Sparkle (TIS), it noted.

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Local Press Release – Sale of Austrian Private Banking Subsidiary

Vienna, September 5, 2008

Valartis Group to acquire Anglo Irish Bank (Austria) AG[link]
[*] Anglo Irish Bank (Austria) AG will become Valartis Bank (Austria) AG
[*] Transaction strengthens international Private Banking activities of Valartis Group
[*] Valartis Bank (Austria) AG will operate as an independent subsidiary
[/link]

The SWX Swiss exchange quoted Valartis Group AG will acquire Anglo Irish Bank (Austria) AG as part of the enlargement of its private banking and asset management activities. This acquisition will facilitate the successful expansion of the Valartis Group into the EU.

This sale follows the successful disposal by Anglo Irish Bank Corporation plc of its Isle of Man trust operations in 2006 and of its Swiss private bank earlier this year. The move is consistent with Anglo Irish Bank Corporation plc’s strategic focus on its core secured lending businesses in Ireland, the UK and the US together with its complementary global treasury business and its Irish and UK wealth management businesses.

Subject to regulatory approval, it is intended that the sale will be completed within three months.

Commenting on the sale, Ernst Abensperg-Traun, CEO of Anglo Irish Bank (Austria) AG said – “We are delighted to be a part of the Valartis Group in the future. With Valartis, we are gaining a partner who is specialised in asset management and has a successful history in the business. Our clients will certainly benefit from the Swiss “savoir faire“, to which we are now gaining access“.

Following the approval of the regulatory authorities, the Bank in Vienna will continue to operate as an independent subsidiary under the new name of Valartis Bank (Austria) AG. The Bank will strengthen its focus on target markets as well as its product range. Commenting on potential synergies, Ernst Abensperg-Traun said – “Both businesses, with their commitment to delivering the highest standards of international private banking services, strongly complement each other and are ideally matched to build on their respective traditions”.

Anglo Irish Bank (Austria) AG provides asset management services for both domestic and international customers. The Bank offers a diversified range of fund products, through its investment funds subsidiary, AIBC Anglo Irish Bank (Austria) Kapitalanlagegesellschaft mbH, which is also being acquired by the Valartis Group. The Bank’s core business has grown considerably in recent years. The Bank currently has approximately 100 employees and 3.500 customers.

The acquisition of Anglo Irish Bank (Austria) AG represents a significant expansion of the Valartis Group’s wealth management activities. The purchase will provide strong and lasting support to the revenue-generating model of the Valartis Group, which is based on the three pillars of Asset Management, Wealth Management and Investment Banking. Moreover, new growth opportunities will be opened up as a result of the increased presence in the Eastern Europe and Russia/CIS markets, joint collaboration on asset management products, and a broader offering of private banking services.

The Valartis Group and Anglo Irish Bank Corporation plc have signed a binding agreement regarding the sale of Anglo Irish Bank (Austria) AG. Both parties have agreed not to discuss details of the sale price.

Separately,Anglo Irish Bank Corporation plc is retaining its long established Austrian branch, Anglo Irish Bank Corporation plc Zweigstelle Wien, and will further invest in its significant deposit gathering and wider treasury activities.

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Anglo Irish Bank today announced that it has agreed to sell its Austrian private banking subsidiary, Anglo Irish Bank (Austria) AG, to Valartis Group AG, a listed Swiss banking group with international wealth management and asset management as well as investment banking activities. Subject to regulatory approval, the sale is expected to complete within three months.

On 7th May 2008, Anglo released its results for the half year to 31st March 2008 with pre-tax profits of €667 million (+16%) and total assets of €101.4 billion. The Austrian private bank contributed 1% of Anglo's pre-tax profits and had net assets of €76 million. Anglo says the sale, which will be accretive to Anglo's capital base, follows the successful disposal of Anglo's Isle of Man trust operations in 2006 and of its Swiss private bank earlier this year. It says the move is consistent with Anglo's strategic focus on its core secured lending businesses in Ireland, the UK and the US together with its complementary global treasury business and its Irish and UK wealth management businesses.

Commenting on the transaction, David Drumm, Group Chief Executive, said: "Anglo has developed a successful international private banking business in Austria with a particular focus on central and eastern Europe. Valartis will be an excellent partner to the business, its clients and employees, bringing complementary product and services expertise while ensuring continuity of outstanding client service.

Separately, we are retaining our long established Austrian branch and will further invest in its significant deposit gathering and wider treasury activities."

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Nipper reminded us yesterday that the Anglo Irish Bank took over the notorious Ansbacher Bank in 1990.

I also notice that Anglo Irish has a Swiss operation - Anglo Irish (Suisse).

The impression could be got from current comment that Anglo Irish had a squeaky clean and uniformly successful past, and that all had suddenly and unexpectedly gone wrong in the last couple of years.

Taking a look at the past of Anglo Irish undoubtedly will shed some light on the present and future.


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This is very interesting. I remember being in a meeting with Anglo executives about 4 years ago and the topic of Banking in Austria came up (cant remember why). One of tha anglo guys mentioned that when they bought the Austrian operation they expected the considerable deposits to leave over time but they never did. He mentioned that they were pay nearly no interest on the deposits to the customers, they just sat there earning nothing and no one ever transferred them from the Bank.

Very strange, I thought at the time.

LOL Gavin , what Iraq connection ??? There was the IRA money laundering angle in the early 1990s of course but that was not the bank itself as much as their largest shareholder.