The Irish banking sector under more pressure
While we have already seen the Anglo Irish Bank nationalised after hitting serious financial turbulence, there are this evening even more question being asked of the Irish government and the Irish banking sector. A senior member of the Irish life and Permanent financial giant has been forced to resign after the government announced an investigation into a €7 billion loan. There is speculation, as yet unproven, that the funds were used to prop up the balance sheet of Anglo-Irish bank ahead of the government's nationalisation.
This is not the first loan scandal which has arisen in the Irish banking sector over the last few months, with various directors of Anglo-Irish in serious trouble regarding personal loans made from the company. As the government battles to secure the deposits of customers across Ireland there is a suggestion that investors will steer clear of the Irish investment market for some time with uncertainty regarding various practices.
After initially seeming to weather the storm (with the help of the authorities) it looks as though the Irish banking sector could see a serious downturn over the coming months. Whether this will claim the heads of any senior figures in the Irish government or the Irish financial community remains to be seen, but the signs are not good.
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