Another bad day for AIB in spite of Lenihan’s reassurances

AIB shares took another hammering yesterday as the Irish market once again closed down, following massive losses on Monday.

Other banks reacted positively to comments from the Minister for Finance Brian Lenihan who reiterated the Government’s intention to continue with a recapitalisation scheme for Bank of Ireland and AIB rather than going down the route of nationalising them.

Bank of Ireland reversed some of its losses in earlier trading after the minister’s comments climbing 6 cents or 18% to 40 cent. It had earlier fallen as much as 21%.