Papering over the cracks in banks

The financial crisis rumbles on. Despite the wars and earthquakes and tsunami we find that the sticking plaster, used to patch up the finances of some European banks, has failed and more drastic measures are need. Irish banks need Euros 24 billion (24,000,000,000) give or take a billion. The European Union has bailed out Ireland (short term loans of Euros 150 billion) and Greece, but there is still a rump of a problem – the Irish banks are insolvent on a “stress test” basis, which is serious news if you have savings in an Irish Bank. The news came out on Thursday this week, and at the time of writing, no news has been published about where the additional capital is to be found. Continue reading