Irish shares down 4.5% after US bank collapses

Irish shares are down 4.5% this morning after the collapse of major US bank Lehman Brothers.

The international division of New York-based bank has gone into administration. The UK arm of the bank was also placed into administration this morning.

Thousands of jobs are on the line in the US and Europe.

Lehmans has been hit by billions of dollars worth of sub-prime mortgage losses and its US operation has filed for bankruptcy protection.

Alan McQuaid from Bloxham Stockbrokers has said there is no guarantee the bank can be rescued.

"Unfortunately some of these banks are just going to go. The overall financial climate is very uncertain and what happens in Wall Street is very contagious," he said.