Lenihan extends bank guarantee ‘in underhand way’

THE bank guarantee scheme was extended indefinitely in “an underhand way” according to the Labour Party who accused the Government of sneaking more bailouts into a bill rushed through the Dáil last night.

Labour said the Government was “seeking another blank cheque for the banks” and Finance Minister Brian Lenihan was giving himself “near dictatorial authority” on handling Irish financial institutions.

The state guarantee of all bank funds was due to expire in September 2010 under the Credit Institutions Bill which was passed amid controversy last autumn.