Anglo recapitalisation approved

The European Commission has approved the Government's recapitalisation of Anglo Irish Bank.

The Commission sanctioned the €4bn investment saying it "constitutes an adequate means to remedy a serious disturbance in the Irish economy".

The move is seen as a temporary measure, and the Government must submit a restructuring plan for the bank up to the end of this November.

As part of the deal, the bank will have to buy back some of the outstanding loans that it issued over the past number of years.