Irish government steps in to save its own banking system
They could not do it in the US, they keep talking about it in the UK but the Irish government has taken the bold step of guaranteeing the debts and deposits of the country's six largest financial institutions. The move, which has given a massive lift to the sector after weeks of concern, will cost around $700 billion in its entirety but the chances are that the vote of confidence will be enough and very little, if any, tax payer's money will be at risk. So how can Ireland do this but not the US or the UK?
The setup of the Irish financial community is very different to that of other countries around the world as they actually have very limited exposure to the US sub-prime market and other so called toxic investments. The big problem over the last few days, and something which was forecast to last some time, was the stalling of the money markets taking away vital liquidity from the Irish institutions.
This vote of confidence by the government has given the sector a shot in the arm and shares rebounded sharply today. However, don't expect an overnight upturn as the Irish economy has actually slipped into a technical recession of late, but at least after the government move the financial giants will stand a fighting chance of trading their way out of the predicament.
Share this..
Related stories
UK government to invest tens of millions into UK broadband
The UK government has today confirmed that tens of millions of pounds will be put aside to finance the U.K.'s digital revolution. The recent Digital Britain report highlighted the need for significant investment and improvement in broadband and mobile services throughout the country and the government has finally promised to assist. Initially, much of the investment required was set to be provided...
Read MoreThree quarters of self employed men have no pension
31/10/2014 Less than a quarter of self employed men in the UK have any form of pension, official figures from the Office for National Statistics shows. Only 22% of self employed men had any kind of personal pension in 2012/13, which was down from 62% in 1996/7. The amount of self employed men with pensions was at 35% in 2005/6. This is in stark contrast to the rise of the amount of peop...
Read MoreBank Of England MPC committee likely to sit tight
Today sees the start of the two-day MPC committee meeting which will decide whether UK base rates change and whether the UK government needs to pump any more money into the UK economy. Amid signs that UK base rates are likely to remain unchanged at 0.5% there is also a feeling that the UK government and the Bank of England will put on hold any more investment into the quantitative easing program.<...
Read MoreRogue Bosses In The Spotlight
Today sees the launch of the government's latest crack down on rogue bosses, poor working conditions and illegal rates of pay with Employment Relations Minister Pay McFadden set to release a major initiative. The move will be backed up by a £6 million marketing campaign, a telephone support line and greater powers for inspectors to check out workplaces throughout the UK.
While th...
Half of Britons 'without financial plans'
About 55 per cent of Britons have no financial plans for the future and a further 32 per cent have no concrete plans for their finances, according to National Savings and Investments' (NS&I) quarterly savings survey for spring 2007.The report states the reason most regularly cited for not saving money is that people expect to be earning more in the future.Dax Harkins, senior savings strategist at...
Read More