Minister won’t rule out bank buy

FINANCE Minister Brian Lenihan refused yesterday to rule out the possibility that Allied Irish Bank and Bank of Ireland may yet have to be nationalised, as market sentiment towards the banking system here continues to worsen.

The Government would have to continue to “adapt policies to events,” he said.

Mr Lenihan said due diligence was currently being conducted on AIB and BOI before e7 billion of taxpayers’ money is pumped into the two banks under the Government’s re-capitalisation scheme.