As bailout costs escalate, it appears writing is on the wall for Anglo

THE mounting losses at Anglo Irish Bank has thrown the Government’s strategy for the failed bank into disarray.

Anglo was saved because of its perceived “systemic importance” to the economy. Allowing it to fold would have destroyed our credit rating and probably resulted in the IMF taking over the running of the economy.

The losses of €8.2 billion announced on Monday for the first six months of 2010 were worse than most feared. Similar losses are in prospect for the second half, which would push the combined losses over the past 27 months to beyond €29bn.