Friday, January 16, 2009

Nationalization on the Emerald Isle...

Say goodbye to Basel II. When the government is the bank, a different set of rules applies.
Ireland to nationalise Anglo Irish Bank
January 16, 2009 - 9:39AM
The Irish government announced Thursday that it would nationalise Anglo Irish Bank, saying a planned injection of public money was no longer enough to secure the troubled bank's future.

"The government has today decided, having consulted with the Board of Anglo Irish Bank Corporation plc, to take steps that will enable the bank to be taken into public ownership," Finance Minister Brian Lenihan said in a statement.

He said the 1.5-billion-euro ($US1.97 billion dollar) plan announced last month to recapitalise the bank will not go ahead, because its funding position had weakened since then.

Lenihan also said a loan scandal had caused "serious reputational damage".

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