What if the Commission decided the Irish guarantee is illegal state aid?
Anyway, if a bank actually looks like failing it'll probably be nationalised, which I have reason to suspect is the alternative that was being considered on Monday night for one or more banks.
Because that WILL be a vital question, and we cannot ignore it even as we deal with today's emergency requirements. In the long run, we're all dead. John Maynard Keynes
According to the Irish Times:
THE GOVERNMENT'S emergency legislation to guarantee the Irish banking system will allow the State to take a stake in any financial institution that receives financial support from the exchequer. The Bill gives the Minister for Finance wide-ranging powers to protect financial institutions and allows for competition law to be set aside to allow bank mergers, if deemed necessary to protect the stability of the financial system.
The Bill gives the Minister for Finance wide-ranging powers to protect financial institutions and allows for competition law to be set aside to allow bank mergers, if deemed necessary to protect the stability of the financial system.
It was worth €10bn when it was given and results in a reduction of the "cost of capital" which only adds to the €10bn, doesn't subtract from it. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
