Bailout 'will cause revolution on streets'
Published 03/03/2010 | 05:00
THE Government was warned last night of a "revolution on the streets" if billions more of taxpayers' money is put into Anglo Irish Bank.
But Finance Minister Brian Lenihan said decisions on recapitalisation will "have to take place soon" because the transfer of loans to NAMA is about to happen.
Mr Lenihan again indicated that the Government will take further shares in the banks in return for additional investment. "If the taxpayer puts more money in, they will own the banks," he said.
The minister said the setting up of NAMA was already having an impact on the banking sector. He said the results from Allied Irish Banks came as no surprise given the crisis that has hit our banking sector.
"But the results do show that NAMA is forcing the banks finally to face up to the reality of their bad loans. The banks engaged in excessive lending to the speculative property development.
"NAMA is making the banks take the losses on these property loans up front. That is borne out by the large losses that AIB is reporting today," he said.
But Fine Gael leader Enda Kenny warned of a revolution if there was more money put into Anglo Irish Bank, which he described as a "dead bank, which will not lend any more money".
"I put it to you, Taoiseach, there will be revolution on the streets if you do that. Whatever case can be made for AIB, there can be no case made for giving €6bn more of taxpayers' money to Anglo Irish Bank."
Mr Cowen said: "We stand ready, if necessary, to provide recapitalisation to the banks."