Finance Minister considers €2bn investment in banks

The Minister for Finance has been presented with a proposal that could see the investment subsidiaries of a number of Irish and international banks recapitalise our domestic banking system.

The Minister for Finance has been presented with a proposal that could see the investment subsidiaries of a number of Irish and international banks recapitalise the Irish banking system.

It would see them invest €2bn in the six banks covered by the Government's guarantee scheme.

An equal amount of investment would be needed from the Government, or possibly the National Pension Reserve Fund.

The plan was made public last night by the Irish Association of Investment Managers.