here's my rant
It was reasonably clear to a lot of peope in the fund management industry in Dublin that Nationwide and Anglo should not be included in the government guarantee at the time it was announced unless it was a condition that they'd be wound down if required, therefore MK's version of events sounds very plausible
In the same way the clear solution now (and has been for some time depending on how close to the curve you are ) is:
Anglo should be wound down in an orderly fashion - it delusional to think its business as normal - it is a zombie bank that now serves no purpose
Nationwide as well - it is even less relevant
EBS - they should be told to find someone to merge with or we'll wind you down too
ILP and BOI should be merged and ideally sold off to a private equity player (chance probably gone now) alternatively just consolidate them - needs to as needs must
AIB might just scrape through as private entity in current form - unless their development loan book is as bad as some fear - goverment could be imaginitive here and use nprf money to buy M&T or Polish bank from them - at least the taxpayer will get something for their money and easier to justify
Government needs to get tough with banks and take whatever steps are necessary to reduce liability to taxpayer and limit damage to economy
Despite what Brian L said about two days ago, chances are that you will need to take bad loans from banks if it is your stated aim not to nationalise them and you want them to stay in business
Otherwise underwrite losses, some type of insurance, keeping it simple is probably better though
The brians need to pick up the pace here - they showed their willingness to take risks when they introduced the guarantee - however given the speed at which events change they need to make some more and make them quickly
The last thing this country need is more state owned companies