The prophet who is not recognised by his party
We need a frank and honest debate about the true cost of the bailout, writes Brendan O'Connor
There was a small piece by Fionnan Sheahan in Thursday's Indo that you may have missed. Apparently Fine Gael TD Peter Mathews said the other day that the banks would need another €20bn bailout, on top of the €24bn agreed to, amidst so much euphoria last week.
Mathews reckons there is still a debt of €90bn to €95bn in the system, of which only €50bn has been recognised so far. Add last week's €24bn to that, and there is still a hole of €20bn. Mathews reckons that once Anglo and Nationwide are taken into account -- you will recall that they were missing from the stress tests -- we'll need to inject another €20bn.
Mathews pulled out of, or was pulled out of, at least one media appearance after his comments, and Sheahan's Indo piece ends with a quote from Mathews saying that he has "privately" developed this possibility.