Randomness (r_ness) wrote,
Randomness
r_ness

The Irish government has decided to guarantee all retail deposits and loans in six big Irish banks.

"[T]he Irish action adds a EUR400bn contingent liability (being the deposit and wholesale funding base of the banks it has guaranteed) to a EUR38bn national debt of a country with a EUR180bn GDP. However you cut it, those are scary figures; this is like a hedge fund embarking on a lemon strategy and rolling the dice."

This is causing money to flow into those banks from other countries, particularly Britain.

Sky News decided to see how difficult it would be to move money to an Irish bank (from the UK).

The European Commission is investigating whether this guarantee breaks EU law, says the Independent.

The Guardian reports the move was taken because the government was afraid one of the banks was going to collapse on Tuesday morning.
Tags: money
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