AIB is facing virtual nationalisation because of new rules on bank reserves proposed by The Financial Regulator, The Sunday Times reports. Such an action would mean taxpayers would be forced to invest billions more than they have already to keep the bank afloat.
Meanwhile, Nama officially becomes a reality today when the first tranche of loans are transferred from Irish Nationwide. All of the Sunday’s speculate the original haircut of 35% will now look more like a skinhead, with discounts of up to 60% being paid by the state on these loans.
The rest of the week will likely be filled with banking news as the full extent of the Nama bailout strategy becomes fully apparent. Guestimates range anywhere between €25 billion and €40 billion depending which commentator you choose to believe – whatever the final bill, taxpayers can expect to be footing it for generations to come.