THE STATE is set to become the majority shareholder in Anglo Irish Bank as intensive negotiations continue this weekend on an injection of €3 billion into the bank.
It is also expected that the bank's remaining directors will resign as part of the capital injection. The bank's new chairman, Donal O'Connor, will continue in office, with the Government expected to appoint new directors.
Anglo Irish's chief executive David Drumm quit shortly after midday yesterday, 15 hours after the bank's chairman, Seán FitzPatrick, resigned following revelations that he had transferred €87 million in loans in and out of the bank each year over an eight-year period until September 2007 to avoid publicly disclosing the loans.
The Financial Regulator is now investigating the €150 million in loans to directors of Anglo outstanding at the end of September. It is also looking at whether similar loan transfers took place at the other six guaranteed Irish banks and building societies.