Bill gives powers to downsize banks

FINANCE Minister Brian Lenihan will have an array of new powers to downsize the country’s banking system under legislation being introduced in the Dáil today.

The Government is seeking to rush through the Credit Institutions (Stabilisation) Bill by the end of the week so it can immediately begin work on the restructuring.

Once passed, Mr Lenihan will proceed to pump extra state funds into AIB by the end of the year, effectively nationalising the bank. Following that, he is expected to move towards winding down both Anglo and Irish Nationwide.