Lenihan refuses to rule out nationalisation of banks

FINANCE minister Brian Lenihan has said the rescue of the main banks was not complete and they may be nationalised even after the National Assets Management Agency (NAMA) is established.

The Government has resisted calls to nationalise the big banks at every opportunity and is determined to ensure theyretain enough capital to trade normally. However, Mr Lenihan said if the price NAMA was willing to pay for the loans was so low that institutions suffered crippling losses, he would take them into public ownership.

“If the consequence of the valuations is that the banks suffer losses which destroy their capital base then of course, of necessity, the state will have to provide that capital and increase the public stake in the institutions concerned,” he said.