IL&P and AIB shares plunge on opening

The markets' verdict on the Government's new banking plan will become clear in the coming hours.

There has already been drama in early trading where Irish Life and Permanent's share price plunged 50% and AIB's shares were also down.

But Bank of Ireland saw its share price surge by more than 27%, after it issued a statement outlining plans to avoid slipping into State control.

After banking stress tests revealed the need for €24bn yesterday, the Government revealed bondholders would not be forced to share the burden.

Taoiseach Enda Kenny said he was concerned that burning the bondholders would prevent Ireland's two new 'pillar banks' from accessing funding on the markets.

It is a decision that has drawn severe criticism, but Peter Spiegel from the Financial Times has said it was never really on the cards.