Irish banks could weather economic storm

THE collapse of Lehman Brothers after 158 years in investment banking has added to the growing credit crunch horror story.

And as the markets were trying to digest that event, Wall Street was hit with further bad news that the New York state had to throw AIG, one of the world’s biggest insurers, a $20 billion (€14bn) lifeline as it scurries around Wall Street in search of a $40bn rescue package to keep it afloat.

It may well be the next casualty of the subprime crisis which the markets thought was about to end with the bail out of Fannie Mae and Freddie Mac last week.