Bloomberg 29 Sept 2010
"Anglo Irish Bank Corp. and Allied Irish Banks Plc may need as much as 14.4 billion euros ($19.6 billion) in extra capital, the country’s central bank said.
Anglo Irish, nationalized last year, may need up to an additional 6.4 billion euros of capital from the government in a so-called base case scenario, the Dublin-based central bank said in an e-mail statement today. That may rise by another 5 billion euros in the event of unexpected losses.
“The market had come to expect the Anglo Irish figures,” said Dermot O’Leary, chief economist at Goodbody Stockbrokers in Dublin. “The surprise here is Allied Irish.”
Ireland has pumped 22.9 billion euros to date into Anglo Irish since it seized the lender in January 2009 as its bad loans soared following the collapse of a decade-long real-estate bubble. The government has injected a total of about 33 billion euros into Irish banks and building societies. Allied Irish may need 3 billion euros in capital, and the government will announce plans to recapitalize the lender, the statement said."
(Above photo Spain protests Sept 2010)
Spain looses it's AAA credit rating down a notch to Aa1. Moody's was lite. Still the people of Spain should be appalled at the reckless spending and speculation that their government embarked on prior to their debt crisis. Spain is a great country, good food, good people.
Watch any overbided risk assets on HFT's for major sell signals. October market 'crash' omens
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