FG ‘deeply sceptical’ about bad bank plan

PUTTING the toxic loans of the country’s banks into one state-run “bad bank” would expose the taxpayer to massive risk, finance spokesman Richard Bruton has warned.

The Government has confirmed that it is considering the establishment of a bad bank, and is expected to announce this week whether it will proceed with the plan.

The loans would be held by the bank until such time as the economy has improved, the hope being that the toxic assets then recover some of their value and could be sold, thereby minimising the cost to the taxpayers.