Irish Government Digs the Country into an Ever Deeper Hole, Takes Control of Allied Irish

The stupidity of the Irish has no limits, as proves the nationalisation of what used to be the biggest Irish bank, and biggest Irish company in market cap just a few years ago. The banking system in Ireland is almost fully nationalised now, and the hole in the government budget even bigger.

The good news is: default and total collapse is just that much closer now, and the people might then get their freedom back.

Dec. 23 (Bloomberg) -- Ireland’s High Court said Allied Irish Banks Plc can be taken over by the government without shareholder approval as the lender became the fourth bank to fall under state control since 2008.

Finance Minister Brian Lenihan secured approval from the Dublin-based court today to inject 3.7 billion euros ($4.8 billion) into the lender by Dec. 31 and raise its stake to 92 percent from 19 percent, the Finance Ministry said in a statement. Allied Irish, Ireland’s largest company by market value in 2007, recorded its biggest share price drop in 22 months in Dublin trading. Valued at almost 21 billion euros at its peak, the bank’s market capitalization today was 347 million euros.

“We wouldn’t have had Allied Irish Banks on the 1st of January if this investment wasn’t made,” Lenihan said in an interview with Dublin-based broadcaster RTE Radio after the ruling.
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Allied Irish fell 20 percent to 32 cents at the 5:10 p.m. close of Dublin trading, giving the lender a market value of 347 million euros.

Allied Irish was formed in 1966 through the merger of three lenders, Munster & Leinster Bank Ltd., Provincial Bank of Ireland Ltd. and Royal Bank of Ireland Ltd. Provincial was established 185 years ago.