Black day for banks as spectre of state control draws nearer

AIB last night responded to the challenges laid down the by the new regulatory regime that demands it finds €7.4 billion to achieve an 8% tier 1 capital ratio by the year end.

It was feared that by the end of his speech to the Dáil yesterday, Finance Minister, Brian Lenihan, would have taken a 70% stake in AIB, but that did not happen.

Fears were expressed also that under the new capital regime, 40% of Bank of Ireland would end up in state hands, once the NAMA discounts on the bad loans held by the banks were unveiled.