Thursday, February 10, 2011

Irish Banks To Require Yet Another 50B Euros in New Bailout

The neverending situation in Ireland keeps getting worse. Today AIB, Anglo Irish Bank Corp., said the nation’s lenders may need about a further 50 billion euros of capital, "more than absorbing the 46B Euros that the Irish govt. has already poured on the bailout fund for the banks.
Bloomberg: “A clean banking core will require something in the region of 50 billion euros,” Dukes, AIB Chairman and former finance minister, said in an e-mailed copy of a speech today. “A clean banking restructuring implies the acceptance of irrecoverable losses.”

"The state has injected 29.3 billion euros into nationalized Anglo Irish. Dukes, appointed as chairman in June, said the remaining “black hole” in the Irish financial system may amount to between 20 billion euros and 40 billion euros".

Filling that gap requires “long term 20 year to 30 year funding, on which there will be no return,”

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