Concerns over 'toxic bank' suggestions

Monday 19 January 2009 11.56
1 of 2
Brian Lenihan - State control 'essential'
Brian Lenihan - State control 'essential'
Enda Kenny - Clarification sought
Enda Kenny - Clarification sought

Minister for Finance Brian Lenihan has expressed reservations about suggestions that Anglo Irish Bank should be used as a so-called 'toxic bank', where bad debts from other banks would be pooled and managed.

He said each bank had to take responsibility for its own bad debts.

The Minister also said that 100% state control of Anglo Irish Bank was necessary to put 'blue water' between the bank and what happened in the past.

Speaking on RTÉ This Week, Mr Lenihan said that while the bank is making enough money from its loans to cover its liabilities, it was esential to nationalise it to ensure the stability of the banking system.

He said the Government was monitoring the market trends and acted on the judgement of the Central Bank to put the security of the bank beyond question to the world at large.

Kenny seeks clarification on Anglo law

The Fine Gael leader has said his party will not support the Government’s emergency legislation nationalising Anglo Irish Bank, unless it gets certain commitments from the Taoiseach.

Enda Kenny said the party welcomed the decision to nationalise the bank, but questions remained about the Government’s plans.

Speaking to RTÉ News, Mr Kenny said he had written to Mr Cowen seeking clarification on a range of issues ahead of Tuesday’s Dail emergency hearing of the legislation.

These include the Government’s plans to have Anglo Irish Bank continue business as usual, which Mr Kenny said he does not believe can happen.

He is also seeking clarification about what level of independent competence there will be on the new board of the bank.

Mr Kenny said he did not want to see a situation where there could be party political interference in the control of those who owe money to the bank.