Anglo Irish named world's dumbest bank by Fortune magazine
Shock that such a small bank could generate such massive losses
Anglo Irish Bank has been named among the world's dumbest banks by Forturne magazine. Anglo is expected to announce $24 billion in losses for 2010. This will be the fifth-biggest banking loss on record.
Fortune magazine said "joining the ranks of the biggest banking losers is an accomplishment in itself" however they said what makes Anglo's losses even more remarkable is the size of the "dinky bank" in comparsion to the other bank on the list. They include the Royal Bank of Scotland, Fortis, Merril Lynch and Citigroup.
The article goes on to call Anglo Irish Bank "the little bank that couldn't".
Anglo Irish has just $118 billion in total assets. This means that it has an impressive negative 20 percent return on equity in the past year.
The Fortune article commented on the brunt of the disaster being felt by the Irish taxpayer. Propping up the banking system has already cost the country a few credit downgrades. Also chairman of Anglo Irish, Alan Duke, form Minister for Finance has said that he losses in the Irish banking sector could amount to $136 billion.
The global business magazine also referred to former Anglo Irish chairman, Sean FitzPatrick's, behavior. They described him as "one of the guys who made out like a bandit while running [it] into the ground".
They were referring of course to the fact that he took €80 million in loans without telling the shareholders and then said that he had spent it.
A full list of the top five dumbest banks is as follows:
Royal Bank of Scotland (2008) - $34 billion
Wachovia (2008) - $31 billion
Fortis (2008) $29 billion
Merrill Lynch (2008) $28 billion
Anglo Irish (2010) $24 billion
Citigroup (2008) $19 billion
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