Ireland to take control of banks, while plans for Fortis are rebuffed
Ireland moved toward greater government control of its financial system Wednesday by bailing out its two largest lenders, while shareholders in Fortis, once the biggest bank in Belgium, derailed state-led plans to sell the nationalized business to BNP Paribas of France.
Together, the moves suggested that Europe - like the United States - was still struggling to find the right template for stabilizing its banks, one that could soothe jittery markets and an increasingly incensed public.
The Irish government, meeting Wednesday night, approved a capital injection of â‚¬3.5 billion, or $4.5 billion, each for Allied Irish Banks and Bank of Ireland, a Finance Ministry official said. Bloomberg News reported later Wednesday night that the ministry confirmed the move in an e-mail message....