Allied Irish Bank was also seen as a reckless lender by its main rival, Bank of Ireland, according to the latest batch of the Anglo Tapes.
Conversations heard between Anglo execs before the banking collapse heard them say BoI thought AIB was lending to “every cowboy in town”.
Since the banking collapse AIB and Anglo have both cost struggling taxpayers €50billion to rescue.
In the latest recordings, Anglo executive John Bowe is heard telling former CEO David Drumm: “They (Bank of Ireland) think that Allied have played fast and loose with lending money to every cowboy in town – apart from ourselves also lending money to every cowboy in town.”
For the first time the tapes bring other banks under scrutiny and give an insight into the banking system and what each bank thought of the other’s banking practices.
The tapes also hear Bowe remark on Bank of Ireland’s confusion that its share price was falling faster than AIB’s.
He said: “They think.. they’ve been the sensible bankers and the market just doesn’t get it.”
And he tells Drumm: “What is exercising Bank (Bank of Ireland) more than anything else is why they’re being beaten up more than Allied (Allied Irish Banks).”
full article at source: http://www.irishmirror.ie/news/irish-news/anglo-tapes-bank-ireland-thought-2015012
- ‘AIB and Anglo lending to every cowboy in town’ (independent.ie)
- BoI shares anomaly intrigued Anglo pair (independent.ie)
- ‘I’ll probably punch Lenihan’ – Drumm (independent.ie)
- Former Anglo Irish Bank chief David Drumm apologizes, says inquiry needed on bank guarantee (irishcentral.com)
- Government hopeful banking inquiry can be established in the autumn (irishtimes.com)