A special liquidator from KPMG is taking control of the Irish Bank Resolution Corporation this morning to wind down the zombie bank and protect as much as €14 billion in assets for the taxpayer.

It follows a dramatic overnight special sitting of the Dáil and Seanad to pass emergency legislation to allow the coalition liquidate the former Anglo Irish Bank.

Michael Noonan was forced to act after his plans - that had been in place "for months" - were revealed by two financial news agencies, Reuters and Bloomberg.

And he told the Seanad that he acted last night after several previous "scares".

During the Dáil debate which began just after midnight, Minister Noonan revealed that the liquidator was already in place and that the special powers were needed to prevent court actions this morning.

The Opposition were split on the coalition plans with Fianna Fáil supporting the move because they "took the Minister at his word" according to Finance spokesman Michael McGrath.

But Sinn Féin and the Technical Group opposed the legislation.

The Taoiseach and Tánaiste explained how they hoped the move would be the first step in not paying the promissory notes for the former Anglo Irish Bank, instead putting off payment with a long term bond for up to 40 years.

But the Taoiseach appeared to read a statement prepared for after the ECB rubberstamps the move, probably in Frankfurt today.

"I believe that today's agreement is a significant milestone. It closes a sad and tragic chapter in our economic and political history" he said.