More trouble overseas:
In a sweeping action meant to regain the confidence of jittery investors, the Irish government said Thursday that it expected to inject billions more euros into two of its largest banks, underscoring the extent to which they continued to jeopardize the country’s fiscal condition.
Brian Lenihan, the Irish finance minister, said that Allied Irish Bank — once the biggest in the country — would come under government control as a result of a state-guaranteed share offering worth €5 billion, or about $6.8 billion. The bank had been trying to raise capital by selling assets, but Mr. Lenihan said the current market conditions would not allow for a private transaction.
The government also confirmed market expectations that under a worst case scenario, its financial commitment to a smaller bank that it already owns, Anglo Irish, could reach €35 billion. This figure equals an earlier forecast by Standard & Poor’s, one that at the time was questioned by government officials. Some Irish analysts said that the ultimate bill for Anglo could be even higher than that.
I can’t be the only one who remembers wingers talking about the “Celtic Tiger” and how we needed to model our economy and tax policies (translation- deep cuts in the corporate tax rate) after them in order to remain competitive with Ireland. Hell, I remember a 60 Minutes special.