10:06CET
This run has taken the banks and Ireland to the edge of collapse, with the biggest losers likely not to be the Irish, but UK banks which have huge loans to Ireland, its banks, companies and people; well over $US200 billion by some estimates.Since August billions of euros have been transferred out of Ireland's stricken banks to other destinations, which seem to be all outside the country because the Irish central bank has been forced to cover billions of euros of funding gaps in the system in September and October, according to reports late last week and this week. The new figures - from the Bank for International Settlements - disclose that Britain faces the biggest potential losses from a meltdown in the Irish economy. UK banks have lent more than those from any other country to the Irish government, consumers and businesses. No wonder the UK government is offering a reported 7 billion pounds ($US10 billion) or so in loans. Collapse in Ireland would plunge the UK financial system into dangerous territory for the second time in three years, and the UK government along with it as it controls RBS and Lloyds. RBS alone is reported to have 50 billion pounds invested.
http://www.sharecafe.com.au/article_air.asp?a=AV&ai=18656
Posted via email from MT4
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