The Irish Bank Resolution Corporation (IBRC) was the name given to the entity formed in 2011 by the court-mandated merger of the state-owned banking institutions Anglo Irish Bank and Irish Nationwide Building Society. Following a High Court order on the application of the

Minister for Finance A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", ...

, Michael Noonan, the Irish government drove through overnight legislation to liquidate the IBRC in February 2013, with the emergency action required given a leaking of plans in the press.

History

Irish Nationwide Building Society (INBS) had been effectively nationalised in August 2010, after receiving a €5.4bn government bailout., while Anglo Irish Bank had been taken into state ownership in January 2009. The two institutions had been widely criticised for their role in the risky lending practices that led to the

Irish banking crisis The post-2008 Irish banking crisis was the situation whereby, due to the Great Recession, a number of Irish financial institutions faced almost imminent collapse due to insolvency. In response, the Irish government instigated a €64 billion b ...

. The removal of both failed banks from the Irish banking system was a key objective for the new

Fine Gael Fine Gael (, ; English: "Family (or Tribe) of the Irish") is a liberal-conservative and Christian-democratic political party in Ireland. Fine Gael is currently the third-largest party in the Republic of Ireland in terms of members of Dáil � ...

-led government. Michael Noonan, the

, made an application to the High Court using his powers under the Credit Institutions (Stabilization) Act 2010, requesting that the assets and liabilities of INBS be immediately transferred to Anglo Irish Bank. The newly merged entity was named the Irish Bank Resolution Corporation. The Finance Minister stated that the new name was important to remove the "negative international references associated with the appalling failings of both institutions and their previous managements".

Liquidation

On 6 February 2013, the board of the IBRC was stood down by the Irish government and replaced by accountancy group KPMG. Michael Noonan introduced emergency legislation to liquidate IBRC, and replace its promissory notes with bonds with an average maturity of 27 years.

Dáil Éireann Dáil Éireann ( , ; ) is the lower house, and principal chamber, of the Oireachtas (Irish legislature), which also includes the President of Ireland and Seanad Éireann (the upper house).Article 15.1.2º of the Constitution of Ireland r ...

began debating the legislation a few minutes after midnight on 7 February. Opposition politicians reacted with instant universal dismay and condemnation of the Fine Gael- Labour coalition's actions and the driving through of legislation during the night. Independent TD John Halligan deemed the legislation "madness", with People Before Profit Alliance TD Richard Boyd Barrett protesting "Only 2 hours 15 mins to read & vote with no details of broader deal in Europe"—both comments made on

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. Independent TD Shane Ross called the showdown a "humiliation" and expressed particular concern about Section 17 of the Bill, which awards wide-ranging powers to the finance minister, while his fellow Independent TD

Stephen Donnelly Stephen Donnelly (born 14 December 1975) is an Irish Fianna Fáil politician who has served as Minister for Health since June 2020. He has been a Teachta Dála (TD) for the Wicklow constituency since 2011. On his election to Dáil Éireann, ...

suggested it was "entirely plausible" that Section 17 is unconstitutional. Socialist Party TD Joe Higgins described the rapid developments as "chaotic". Finance Minister Noonan also made reference to the hundreds of people who were effectively sacked on live television; according to

Sinn Féin Sinn Féin ( , ; en, " eOurselves") is an Irish republican and democratic socialist political party active throughout both the Republic of Ireland and Northern Ireland. The original Sinn Féin organisation was founded in 1905 by Arthur G ...

finance spokesperson

Pearse Doherty Pearse Daniel Doherty (born 6 July 1977) is an Irish Sinn Féin politician who has been a Teachta Dála (TD) for the Donegal constituency since the 2016 general election, and previously a TD for the Donegal South-West constituency from 2010 to ...

the workers found out from

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that they had lost their jobs.

Commission of investigation

In 2015, the government proposed a motion in the

Oireachtas The Oireachtas (, ), sometimes referred to as Oireachtas Éireann, is the bicameral parliament of Ireland. The Oireachtas consists of: *The President of Ireland *The two houses of the Oireachtas ( ga, Tithe an Oireachtais): **Dáil Éireann ...

to establish a commission of investigation into the operation of IBRC. On 10 June 2015, it was announced that Mr Justice Daniel O'Keeffe had agreed to serve as Chairperson of the Commission of Investigation.

References

External links

* {{2008 economic crisis Post-2008 Irish economic downturn Irish companies established in 2011 2013 disestablishments in Ireland Banks established in 2011 Banks disestablished in 2013 Defunct banks of Ireland Government agencies established in 2011 Government agencies disestablished in 2013 Government-owned companies of the Republic of Ireland