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Banking: EC fears over Anglo

THE EUROPEAN Commission is growing increasingly concerned about the cost of rescuing Anglo Irish Bank.

Officials in Brussels now want clear reassurances that there will be no further escalation in the cost of keeping the bank afloat if they approve its restructuring plan, despite claims made by Anglo chief Mike Aynsley.

Mr Aynsley said that the price of recapitalising the nationalised lender can be contained at that level of the €25bn plan to restructure the bank's ailing business.

It's understood that the commission would not object on competition if the decision was taken to liquidate the bank.

Meanwhile, the coalition partners have issued a statement to deny that they are split over the future of Anglo.

Fianna Fail and the Green Party said they were agreed on finding a resolution to problems at the bank at the least possible cost to the taxpayer.

Party leaders, Brian Cowen and John Gormley have been attempting to stem growing rumours that the Green Party were in favour of winding down the bank.