Tue Sep 30th, 2008 at 04:40:35 AM EST
After a spate of bank rescues in the Eurozone yesterday - Fortis, Dexia, Hypo - the Irish government has come to the assistance of the Irish banks by guaranteeing all their deposits, bonds and debt.
It is claimed that this is being provided as a service to the banks on a commercial basis - they're getting a bill for it in other words - though the terms of that aren't clear yet.
This is after the worst day for the Irish stock market in twenty years or so.
The decision has been taken by Government to remove any uncertainty on the part of counterparties and customers of the six credit institutions. The Government’s objective in taking this decisive action is to maintain financial stability for the benefit of depositors and businesses and is in the best interests of the Irish economy. (Text of government statement via Irish Times)
They're probably right: anecdotally, stock market sentiment seems at odds with the ways the banks are behaving with their customers - some that have been badly hit appear to be looking to do business and seem to have cash available while some who have been punished less by the stock market would appear to be trying to keep hold of every last cent they can.