Anglo Irish, we are told, has a balance sheet "loss" of some €26bn, with dubious outstanding loans (after those passed to Nama) of €46bn and about €12bn in good loans. These generated a profit of €150m in the past six months, which, translating to €300m in a full year, would certainly cover its overheads.

Let's say Anglo converts the €26bn loss into preference capital (unissued) and sells it for an agreed 40% of the retrievable value of the €46bn to Asset Recovery Ltd (owned by the government). This company does not trade, therefore it is not insolvent but could trade from Anglo's premises with the secondment of certain Anglo staff.

Anglo would have substantial 'paid up' capital, some €12bn of good loans producing a minimum of €300m a year ? it is now a 'good bank' which can offer deposits that can be redeemed (all or part) for preference shares ? all this guaranteed by the government which would deposit €10m in working capital for Anglo.

The basics of the re-organisation can be effected within 24 hours at a minimal cost to the taxpayer who will own a profitable bank. This overcomes the insolvency and capital ratio problems of what was a well-established bank, until greed overtook common sense. The reorganisation would also give confidence to the money markets and the people.

Ralph Fagan

Dun Laoghaire

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