ECB concerned by Irish bank bailout law
FRANKFURT/DUBLIN (Reuters) – The European Central Bank has expressed “serious concerns” that a new law in Ireland could force the central bank to take losses on the collateral it accepts in exchange for loans to commercial banks. Ireland parliament approved on Wednesday legislation which will give the government extensive powers to restructure the banking sector, including the power to impose losses on subordinated bondholders and transfer deposits. Opposition politicians have warned that the law, which fulfils Ireland's pledge to overhaul its banking system as part of an 85 billion euros EU/IMF bailout package, will turn Finance Minister Brian Lenihan into a…
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ECB concerned by Irish bank bailout law
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on December 20, 2010. Filed under
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