Irish Bank Tests Add To Euro Debt Worries

Allied Irish Banks and Bank of Ireland were suspended from Dublin's Stock Exchange for 24 hours amid fears the results could create disorder in the markets. Irish Life & Permanent, which owns the country's largest mortgage lender, Permanent TSB, was temporarily removed from trading in Dublin and London yesterday after its share price collapsed. The Educational Building Society is also expected to need state funding. Ireland received an €85bn (£72.1bn) bailout from the EU and IMF last year, including a £3.25bn bilateral loan from Britain, which has mainly been used to shore up its debt-ridden banks. Anglo-Irish Banks, the lender nationalised at the height of the crisis, has announced losses of €17.7bn (£15.5bn). The bank has taken €29bn in capital support in the past two years, but no more will be needed, it said.

Sky News Article

European Worries


According to Sky they had to suspend two of the banks involved from the stock market to avoid the prices from a dive. Surely this is just going to prolong the inevitable crash and subsequent bond price hikes?

I live in Ireland and am planning on emigrating when I finish college but the media here are trying to portray young people leaving the country for opportunity as unpatriotic and sometimes it makes me feel guilty but then I look at the mess the government made and see no alternative.

Shares in Irish Life and Permanent lost more than half of their value, after news that all of its profitable businesses, including Irish Life, are to be sold off and the proceeds sunk into efforts to raise €4 billion of fresh capital. But shares in Bank of Ireland and AIB were boosted by yesterday's decision. Bank of Ireland was up around 40% this afternoon, while AIB was almost 10% ahead

RTE News