Emmet Oliver: No sparing our blushes as big guns come to the rescue
IT's the banking bailout that nobody in officialdom thinks is necessary, but is happening anyway. Financial Regulator Matthew Elderfield, Central Bank governor Patrick Honohan, Finance Minister Brian Lenihan and the European authorities all claim Ireland's banking system has enough capital to absorb future loan losses.
But yet the banks are to be given another giant injection of funds to deal with losses that first cropped up three years ago.
While Elderfield, Honohan and Lenihan may believe the banks are adequately capitalised, their views are, in a sense, irrelevant. The markets, which fund the banks, do not believe they have sufficient capital and the Government's various banking announcements have failed to alter this negative sentiment.