Summer
October 1st, 2008, 03:28 AM
The 400bn battle
THE Government last night battled for sweeping powers to allow it to step in and prevent troubled banks from going under.
Following a long day of drama, the full details finally emerged of Taoiseach Brian Cowens unprecedented 400bn guarantee to safeguard the country's six banks. But the wide-ranging new laws go far beyond just guaranteeing loans.
New legislation to back up 400bn worth of loan guarantees for banks, introduced to the Dail late last night, gives Finance Minister Brian Lenihan the ability to step in as he sees fit to help out with financial support, including loans, guarantees, exchange of assets, and buying up shares.
In effect, the legislation stops just short of nationalising a bank, if the Government thinks it is necessary, as it allows for a stake to be bought up. It also provides for the overriding of competition laws if a merger of a bank is required, similar to a recent case in Britain.
The action taken by the Government in giving 400bn worth of guarantees to six of the main banks prompted a bounce back on the domestic financial market.
Clink link below to continue...
http://www.independent.ie/business/irish/the-euro400bn-battle-1486598.html
THE Government last night battled for sweeping powers to allow it to step in and prevent troubled banks from going under.
Following a long day of drama, the full details finally emerged of Taoiseach Brian Cowens unprecedented 400bn guarantee to safeguard the country's six banks. But the wide-ranging new laws go far beyond just guaranteeing loans.
New legislation to back up 400bn worth of loan guarantees for banks, introduced to the Dail late last night, gives Finance Minister Brian Lenihan the ability to step in as he sees fit to help out with financial support, including loans, guarantees, exchange of assets, and buying up shares.
In effect, the legislation stops just short of nationalising a bank, if the Government thinks it is necessary, as it allows for a stake to be bought up. It also provides for the overriding of competition laws if a merger of a bank is required, similar to a recent case in Britain.
The action taken by the Government in giving 400bn worth of guarantees to six of the main banks prompted a bounce back on the domestic financial market.
Clink link below to continue...
http://www.independent.ie/business/irish/the-euro400bn-battle-1486598.html