September 30th, 2008

Lord Lipsey cries havoc as Ireland guarantees bank deposits

Posted in Money by ed

As the international crisis swells, Ireland is set to simply guarantee all deposits in Irish banks.

Hence money is flooding in from both sides of the pond — setting off an amusing reaction in London as old animosities stir.  From the London Times:

Dublin was accused of making matters worse for non-Irish banks, with corporate treasurers and large savers pulling money out and putting it into the safer haven of Irish banks.

“If this is legal, then I’m a banana,” one disappointed senior British banker said, arguing that the Irish guarantee amounted to unfair state aid.

Lord Lipsey, the chairman of the Financial Services Consumer Panel in the UK, said it was “a national disgrace” that British depositors might be worse compensated than their Irish counterparts in the event of a bank failure.

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