Anglo Irish Bank loses euro3.8 billion in 6 months because of defaults on its loans to developers

Anglo Irish Bank loses $3.8 billion in 6 months

DUBLIN — Anglo Irish Bank is reporting a massive loss of euro3.8 billion ($5.3 billion) in just six months because of widespread defaults in its loans to property developers.

Finance Minister Brian Lenihan says the government, which nationalized the bank in January, plans to deposit up to euro4 billion into the bank in coming weeks subject to European Union regulatory approval.

The government seized control of Anglo amid a string of scandals. The bank admitted hiding tens of millions in loans to its own chairman, floating loans to top businessmen on condition they buy Anglo’s falling shares, and hiding the true scale of losses from investors.