ANGLO Irish Bank may be blowing a big hole in the nation’s finances, but the latest plan to deal with its travails has not made a huge splash in international media.
The influential Wall St Journal reported on the plan to split Anglo in two under a headline which read: Irish Fin Min: Anglo Irish Bank Plan Is “Orderly Work-Out”.
The Washington Post’s headline read: Ireland to split troubled bank, sell some assets, while the accompanying report stated: “Ireland plans to split its most troubled financial institution, Anglo Irish Bank, as part of wider efforts to reassure international lenders that the Irish are dealing with their debt crisis.”
Fortune Magazine took a stronger view, declaring that Bank bailout fears batter Ireland.
“The mounting cost of a giant bank bailout is pushing Ireland perilously close to sovereign debt crisis territory,” it said. “The cost of insuring against a default on Irish government bonds jumped 4% Wednesday to a record, and the Government’s cost of borrowing in the bond markets for 10 years rose above 6%, as officials met to discuss what to do about the foundering Anglo Irish Bank.”
The Government’s plan was reported in the Guardian under the prosaic headline: Anglo Irish Bank split in two.
This echoed the Boston Globe’s take on the issue, with its headline: Troubled Anglo Irish Bank to be split.
The Daily Telegraph said the new measures to be implemented regarding Anglo were to shore up confidence in the wider economy.
‘Ireland breaks up Anglo Irish in bid to restore confidence’ its headline read, over a report which began: “Ireland is to break up the nationalised lender Anglo Irish Bank, hoping to end a disastrous saga that has shattered confidence in Irish finance and left taxpayers with daunting debt.
“The move came after yields on Irish 10-year bonds rose above 6% for the first time since the launch of the euro.”
The International Herald Tribune followed suit, as it stated: “Portion of Anglo Irish will be closed or sold in bid to ease market fears: A recent deposit run, as well as a sharp rise in Government bond yields to 6%, a level that some analysts see as being “unbearable,” has forced the government’s hand.
“The Irish government, bowing to market fears that its escalating banking losses might cause it to seek a bailout, said Wednesday that it would split Anglo Irish Bank into two entities, one of which would eventually cease operations or be sold.
“The decision represents a backtracking of sorts for the Government, which has said that it would be more expensive to close Anglo Irish, which is weighted with bad loans incurred during Ireland’s debt-fuelled real estate boom, than to keep it going as a smaller institution.”
Business news website The Business Insider adopted a more blunt approach to language with regard to the troubled bank, declaring: Here’s How Ireland Got Into This Huge Mess With Anglo Irish Bank.
© Irish Examiner Ltd. All rights reserved