independent

Saturday 19 April 2014

Bailout 'would spark revolution'

A warning has been issued over a possible further bailout of Anglo Irish Bank

A revolution will erupt if billions of euro more in taxpayers' money is handed over to Anglo Irish Bank, Enda Kenny has warned.

The Fine Gael leader said people can no longer tolerate massive public funding of the nationalised bank as it stands.

Expected record losses at the bank, to be announced later this month, have fuelled speculation it will seek another six billion euro from the Government, on top of the four billion it has already pumped in.    

Mr Kenny told Taoiseach Brian Cowen there will be a popular uprising if any such request is given the go-ahead.

"There'll be revolution on the streets if you do that," he insisted.

"Whatever case can be made for Allied Irish Bank (AIB), there can be no case made for giving six billion euro more of taxpayers' money to Anglo Irish Bank.

"This is effectively a dead bank which will not lend any further monies."

Mr Kenny demanded Anglo be split into a "good bank" and "bad bank" - taking control of the toxic borrowings - before it is given any more help.

The Fine Gael leader also demanded AIB be handed preconditions if it requests further recapitalisation, after the lender went into the red for the first time in its history with pre-tax losses of 2.65 billion euro.

Mr Cowen said Anglo has already asked the European Commission for permission to break up into a "good bank" and "bad bank", and insisted the Government remains ready to give more cash to banks in an effort to save them.

Press Association

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