Irish state may take stake in last private bank, says Irish Times

Tuesday, March 29, 2011

The Irish government may have to take a large stake in the last fully private Irish bank, Irish Life & Permanent, as a result of the severity of this week's stress tests, reports the Irish Times.

Comment by: Anonymous. Posted 13 years ago [2011-03-29 14:29:26]

Just a thought here, I thought the principal cause of the Irish sovereign's distress was its support of the banks. Why would Ireland extend itself one more time for this last of the largest banks? I realize it's just EUR 1 billion (at the moment), but Ireland has already taken ESF funding and is in dispute on the terms of that loan. Why not - for the sake of experiment - let IL&P manage itself through its difficulties or manage its own insolvency? Perhaps that sounds crazy given that the government is likely liable for the EUR 19 billion in deposits anyway, but "saving" the other banks hasn't worked, either, in the sense that Ireland is likely to default within the next few years. My vote is that Iceland had the better answer.

CLOs

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