Wednesday, September 8, 2010

The Elite Bailed Out Again: Irish Government Steps in to Halt Run on Anglo Irish Bank

Following huge deposit outflows, the Anglo Irish Bank Corp. will be split into two banks by Ireland’s government and part of the bank will be wound down over time or sold.

Anglo Irish will be split into a “Funding Bank” and an “Asset Recovery Bank,” the finance ministry said in a statement today. “It is intended that in due course the Recovery Bank will be sold in whole or in part or that its assets will be run off over a period of time,” it said.

Ireland’s central bank will determine by October how much capital will be needed by both institutions, the finance ministry said.
Bottom line: Anglo Irish suffered from a bank run that has resulted in the Irish government stepping in. Details of the bailout (takeover)  remain sketchy, as does the cost.
Thus, the banking elite are bailed out again. Their deposits held at Anglo Irish will be protected. The global insider's  banking monster continues to be protected ultimately to be paid by Irish citizens via higher taxes.

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