Banks volatile as markets waver

IRISH shares plunged more than 6% yesterday as investors feared the Government would have to buy stakes in banks to create further safeguards for the Irish financial system. Analysts said this step is in keeping with other European governments but would nonetheless dilute existing investor’s holdings.

The ISEQ index fell 192.77 points to 2,830.13 ending a two day rally.

As usual, bank stocks had a mixed day swinging between ups and downs for much of the session.