Lenihan hints banks may still need Govt cash injection

The Minister for Finance Brian Lenihan hinted again today that the Government could yet step in to pump money in to the country's ailing banks, as share prices continue to fall.

Bank of Ireland and Irish Life and Permanent suffered further loses amid fears that the country's financial institutions will need a Government cash injection to boost their lending power.

Minister Lenihan said that he would know what's needed once the Government appoints officials to oversee the banks as part of the guarantee scheme.

Meanwhile in the US, the former head of the Federal Reserve Alan Greenspan called the turmoil a 'once in a century credit tsunami'.

Mr Greenspan also admitted that banking self-regulation has failed badly.