page_title: Post-2008 Irish banking crisis
section_title: Recapitalisations of AIB and Bank of Ireland
hierarchical_section_title: Post-2008 Irish banking crisis / Recapitalisations of AIB and Bank of Ireland
caption_attribution_description: Joe Higgins, MEP, speaking during 2010 banking crisis protest against bailout of Anglo Irish Bank, Dublin
context_page_description: 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 bank bailout. This then led to a number of unexpected revelations about the business affairs of some banks and business people. Ultimately, added onto the deepening recession in the country, the banks bailout was the primary reason for the Irish government requiring IMF assistance and a total restructuring of the Irish Government occurred as result of this.
context_section_description: Having guaranteed the six main Irish banks in September 2008, the Minister for Finance, Brian Lenihan announced on 21 December 2008 that he would seek to recapitalise Ireland's three main banks, Allied Irish Bank (AIB), Bank of Ireland (BoI) and Anglo Irish Bank. Under the plan the Government would take €2 billion in preference shares in each of Bank of Ireland and Allied Irish Bank and €1.5 billion in preference shares in Anglo Irish Bank, giving it a 75% control of the latter.
  On 11 February 2009, Lenihan announced the provision of two €3.5 billion bailouts to AIB and BoI as part of his government's recapitalisation scheme. The plan would also see the Minister appoint 25% of the directors at each bank, whilst the banks had agreed to provide a 30% increase in mortgages for first time buyers and a 10% increase in loans to small and medium businesses as well as to hold-off on repossessions of mortgage holders for twelve months after they fall into arrears. The salaries of senior bank executives will be frozen and they will not receive performance bonuses. However, it was found in 2013 that payrates at Irish banks increased between 2008 and 2012. Richard Bruton of the then opposition party Fine Gael, responded by calling the recapitalisation plan a "€7 billion gamble on the wrong horse".
  Bank of Ireland chief executive Brian Goggin announced his retirement in January 2009, confessing to RTÉ that his bank has made bad lending decisions. Asked about his expected salary for 2009, Goggin admitted that it would be "less than €2 million". Goggin had earned approximately €3 million in the year to 31 March 2008. He was replaced as CEO by Richie Boucher whose appointment was announced on 25 February.
caption: Protestors outside Anglo Irish Bank during protests against the bank bailout in April 2010
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