Irish markets slide as banks battered

IRISH shares fell almost 2% yesterday, with AIB and Irish Life and Permanent taking a battering.

AIB dropped 8.3%, to 88 cent, and Irish Life & Permanent lost 10.2%, to close at €1.66. Bank of Ireland however, finished flat at 76c after earlier gaining 5.8%.

Earlier in the day, Irish Life & Permanent, the listed lender most reliant on international finance, fell as much as 13% as the cost of interbank lending rose and the market for new bank bonds froze.