Accordingly, the Government decided to abandon the plan to build a new business bank out of Anglo and to proceed to a dismantling of that bank.9 Following this announcement, Anglo management were asked to provide a firm assessment of their prospective losses under the new structure. This estimate implied higher non-NAMA losses than had been envisaged under the previous plan.
There was a clear need for better and more comprehensive regulation. As a result, macroprudential policy moved up on the political and academic agenda. The idea being that dosed correctly, prudential measures could reduce the likelihood and costs of financial crises.