Fianna Fail, the September 2008 Bank Guarantee and Gilmore

The bank guarantee was a mistake in hindsight because it should have only covered the banks with systemic importance to the republic. Anglo Irish and Nationwide were mistakes and the guarantee should have covered Bank of Ireland and AIB only. The second mistake was to nationalise Anglo instead of letting it go bust.

Labour Party leader Gilmore is incorrect when he says that the current situation heading to defacto nationalisation of the banks is more expensive and more damaging. Wrong Gilmore wrong again. Look at the price of shares that the government has rights over and do the arithmatic. Then correct your mouth. You are right in one aspect – it would have been faster to have bought the banks earlier but not wiser. The British Labour government part nationalised Royal Bank of Scotland and LLoyds – where Bank of Scotland and Halifax Building Society were absorbed- to keep them going and are likely to get out with a profit for the public. Northern Rock was nationalised for social reasons and is likely to be sold in due course.