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Banking Crisis

Governments must break the link between states and their banks according to Ajai Chopra, Deputy Director, European Department, International Monetary Fund, and leader of the 'troika' currently overseeing Ireland's Bailout Agreement with the IMF, the European Central Bank and the European Commission.  In a remarkable presentation at the Dublin Economic Workshop in Kenmare on October 15, 2011, he outlined a position that is remarkably similar to that  proposed and advocated by

Ireland is heading for bankruptcy, which would be catastrophic for Ireland according to Morgan Kelly in his op-ed article in the Irish Times on May 7, 2011.

The full text of the 172-page Report of the Commission of Investigation into the Banking Sector in Ireland was published on April 20, 2011.

Systemic financial crises, like the recent Irish one, require a great number of institutions, enterprises 

1.   Ireland’s Banks Stress Tested:The Financial Measures Programme Report, which details the outcome of the review of the capital and funding assessments of domestic Irish banks(stress test) published on Thursday 31st March 2011

NCB have published a very interesting analysis of the future for Irish bank senior bondholders.  It shows there are almost €75bn in bonds held currently by the Irish banking system.  A substantial proportion of these (almost €25bn) are either subordinated or unsecured.

An article by financial journalist Michael Lewis in next month’s Vanity Fair argues that Ireland will have no choice but to default on the private debt (i.e. not sovereign debt). Lewis is well known for writing on Greece and Iceland and their financial crises. He argues strongly against the claim that Ireland has no choice but to repay the debts run up by gambling bankers and speculators.