Latest bank rescue grabs the headlines

Latest bank rescue grabs the headlines

Screengrab of the homepage of the 'Financial Times' websiteRelated
BoI and AIB shares rise after €24 billion put into banks | 01/04/2011Portugal's borrowing costs rise | 01/04/2011Bank of Ireland and merged AIB-EBS to form pillars of Irish banking sector | 01/04/2011In worst-case scenario bad mortgage debts could total EUR9.5bn by end 2013 | 01/04/2011Banking Crisis Some international media reaction to Ireland’s latest bank rescue plan:

Call the fat lady: Ireland’s banking horror show must end now. Its four surviving banks will require €24 billion of new capital after Thursday’s stress test results. That brings the amount of public money poured down the drain since they were felled by the global financial crisis of 2008 to €70 billion – 45 per cent of gross domestic product - Financial Times.

Mr Honohan said the latest tests were designed to draw a line under the banks' problems and help them return to normality. However, investors remain sceptical that even these harsher tests and new capital raisings will bring an end to Ireland's problems. – The Telegraph

Ireland’s bill for bailing out the banks has climbed to over €70 billion, equivalent to half the annual wealth of the country – Le Monde

Ireland is on track to nationalise its banking sector after its government uncovered a €24 billion capital shortfall in the latest round of "stress tests" of top banks. That gap will be plugged largely by taxpayers. – Wall Street Journal

Portugal on Thursday disclosed new and larger budget deficits for last year, and Ireland said its banks need tens of billions of dollars in additional capital. The fresh round of bad news is likely to further shake confidence in Europe’s ability to resolve its lingering financial problems anytime soon – Washington Post

A higher-than-expected budget deficit in Portugal and the need for more money to rescue Ireland’s failing banks have renewed fears that Europe’s debt crisis is worsening despite its sizable bailout fund - New York Times

Irish banks have become highly dependent on short-term loans from the ECB, but the country's credit rating has been hit over the bailout and continued concerns the extent of the banking sector's problems – Sydney Morning Herald