Ireland urged to take nuclear option: dump broken banks
With the savage sell-off in peripheral eurozone sovereigns nearing a point of no return after Germany’s demand that the burden of debt restructuring be shared, bankers are calling for Ireland — where the government could soon lose its majority and Eu50bn-Eu60bn of guaranteed bank debt must be rolled over — to activate the nuclear option of dumping its banks to save itself.
"No one believes that the financial state of the banks is as stated in their balance sheets and yet the government stands behind them, which undermines the sovereign itself," said the head of one investment banks public sector debt business.
"The best solution is to retain Bank of Ireland
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