Bank shares plunge as funding issues persist

IRISH bank shares plunged yesterday as funding issues persist and less signs of an economic turnaround are seen.

Experts said the rising cost of government borrowing and continued uncertainty about the state guarantee for banks after September both weighed heavily in early trade.

In the morning AIB was down almost 5% while Bank of Ireland was 6% lower. At the close AIB was down 4.3% to 80 cent while Bank of Ireland finished down 2.2% to 77 cent. Irish Life and Permanent was also down 2% to €1.66.