Wednesday 21 March 2018

Maeve Dineen: Guarantee made in panic needs to end without fuss

THREE years ago today, we woke up to the news that Brian Lenihan had guaranteed the entire Irish banking system.

It was a breathtaking late-night gamble that stunned most of us and the rest of Europe. In the days following the guarantee, money flowed into the Irish banking system from abroad as people everywhere tried to protect their money from the aftermath of the Lehman collapse.

A week later, the money began to leave again (and it hasn't stopped since) as savers cottoned on to the fact that the Irish Government would simply be unable to cover over €400bn of possible bank debt, including deposits, no matter what the Government was saying.

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