An emergency law giving the minister for finance power to spend “possibly limitless” sums of public money supporting financial institutions via promissory notes was so general it could mean the minister intended to “save a village credit union or Anglo”, the High Court has heard.

A new private equity fund set up by ex-Lone Star vice chairman Ellis Short to buy loan books across Europe is establishing a unit in Ireland, a source close to the matter said.

Four TDs — Clare Daly, Luke Flanagan, Mick Wallace, and Joan Collins — want to be joined to businessman David Hall’s legal challenge to the Government’s payment of promissory notes issued in favour of the former Anglo Irish Bank and other financial institutions.

Businessman David Hall has been awarded part of his legal costs for his failed challenge to the State's decision to pay promissory notes under which €31bn, to date, has been paid in aid of Irish financial institutions,

The chief executive of the Educational Building Society, Fergus Murphy, is putting his name behind a €2bn plan to create a Chinese trade hub and university campus in Cork.

A businessman has claimed in a High Court action that the Government's decision to issue €30bn worth of promissory notes to financial institutions Anglo Irish Bank, Educational Building Society and Irish Nationwide Building Society is unlawful.

THE European Commission has approved state aid of up to €13.1 billion for the merged Allied Irish Bank and Educational Building Society to ensure it is sufficiently capitalised to meet stress test requirements.

A FIRM of solicitors retained by a bank to act for it concerning substantial loans to property developer John Kelly and struck-off solicitor Thomas Byrne is being sued for €23 million over an alleged failure to ensure the bank had proper security related to those loans.

THE fifth stress test exercise on the Irish banks — bringing the total bailout bill for the country’s financial sector to around €70 billion — “doesn’t score highly on fairness” to the taxpayer, but marks the best way forward, according to Central Bank Governor Patrick Honohan.

Yesterday’s announcement of the result of the Central Bank’s stress tests into the country’s banks was designed to boost confidence by providing a realistic insight into the extent of the financial problems facing the country.

Finance Minister Michael Noonan said the Government has to act on the banking crisis or ATMs would stop giving out money.

UP to €15 billion from the National Pensions Reserve Fund, set aside when the Celtic Tiger was still roaring, is likely to be used to recapitalise three of the country’s banks.

A couple who are facing being evicted from their Dublin home are seeking leave from the High Court to challenge a county registrar's decision last May making an order for repossession of the property in favour of the EBS.

The European Commission has opened an in-depth investigation into the proposed restructuring of Educational Building Society (EBS), it was announced today.

The European Commission yesterday cleared the way for the National Asset Management Agency (NAMA) to take toxic loans from financial institutions as an important step in restructuring the financial sector.

A LEGAL action against three businessmen aimed at recovering loans of €31.5 million for developments in Cork has been adjourned after agreement was reached “in principle” with two of the defendants.

BUILDING societies could be part-nationalised under new laws announced by Finance Minister Brian Lenihan last night.

THE Educational Building Society (EBS) is by far the least exposed of the six relevant financial institutions to the NAMA proposal — with “just” €1bn of the total €77bn worth of loans coming from its balance sheet.

A DEVELOPER being pursued by the Educational Building Society over loans of €8.4 million has claimed the society got its own “in-house” broker to hugely inflate the value of a development site to e10m to ensure his loan application was successful.

A five-year Government blueprint aims to protect the Irish economy from the global recession, the Taoiseach said today.

A €10bn initiative to shore up Ireland’s banking sector was underway today.

IRISH banks have all now decided whether or not to join the Government’s two-year guarantee scheme for vulnerable financial firms.

Ireland’s bank-guarantee scheme has been approved by the European Commission.

British banks today challenged the Irish Government over its promise to give 100% protection for savers, suggesting the move was anti-competitive.

THE ISEQ index finished up 259.11 points at 3,550.63 yesterday as the Government announced a guarantee on all deposits in Irish banks.

The United States Congress balked at a rescue package worth $700 billion (€485bn) on Monday, because of the implications of providing government support for bad private investments. The Irish Government, on the other hand, effectively drew up a guarantee for the banks of €400bn, or $570bn.

Taoiseach Brian Cowen tonight defended a radical €400bn state guarantee of all deposits and loans amid claims the deal has handed the country’s biggest banks a blank cheque.

Finance Minister Brian Lenihan today called for EU-wide protection for banks as he announced a €400bn state guarantee of all deposits in the country’s indigenous financial firms.

The ISEQ index of Irish shares rallied immediately after opening today, on the back of the Government's decision to safeguard all deposits with Ireland’s main banks for the next two years.

The Government has announced a guarantee arrangement to safeguard all deposits with Ireland’s main banks for the next two years following yesterday's turmoil on the stock markets across the world.

THE Educational Building Society has urged mortgage holders to manage their mortgages more effectively as interest rates rise.

The Educational Building Society is to cut its variable mortgage rate to 3.25% which it claims is now the lowest on the Irish market.