Lenihan: ‘Bad bank’ would be major cost to taxpayer
The Minister for Finance Brian Lenihan is warning that setting up a ‘bad bank’ to deal with the risky loans of the major banks would carry a high cost for the tax payer.
The Dáil has been debating the bill to allow €7bn from the National Pensions Reserve Fund be used to recapitalise AIB and Bank of Ireland.
Minister Lenihan says the National Treasury Management Agency is still examining the best course of action to take in dealing with bad development and land loans.
