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Zombie Banks won’t restore financial credibility-Morgan

10 August, 2010


Speaking today after the European Commission granted approval for an emergency recapitalisation of over €10 billion for Anglo Irish Bank, Sinn Féin Spokesperson on Finance Arthur Morgan has said that the Government is delusional to believe that pumping endless amounts of money into a zombie bank will restore financial credibility. Deputy Morgan also said that the approval was opening a can of worms where Anglo Irish will be subject to endless recapitalisations by taxpayers.

Deputy Morgan said:

“This recapitalisation has been approved because it has been sold as a method of preserving confidence in Irish financial markets, but nothing could be farther from the truth. This Government is delusional if it believes that pumping endless amounts of money into this zombie bank will restore our financial credibility.

“Anglo Irish bank is a zombie bank, of which no return can be made for the ordinary people of this State who are being made fund these continuous recapitalisations. No credibility and confidence can be gained from exposing taxpayers to these liabilities.

“The ramifications of today’s decision of the European Commission are such that the amounts of capital that can be pumped into Anglo Irish surpass the €22billion previously mentioned by the Minister for Finance. Essentially it is opening a can of worms where Anglo Irish will be subject to endless recapitalisations by taxpayers for whom Anglo Irish did nothing, while savaging essential services for ordinary people.

“What is clear from today’s approval is that this is not the end of the debacle of Anglo Irish. This Government is content for the Irish people to continue to foot the bill for a decade of speculation and property binges by some of the most corrupt figures in this State and the European Commission are sanctioning this injustice.” ENDS

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