Mail on Sunday - Banks in Ireland 'on brink of collapse'

Is this just irresponsible reporting by the MoS, or should we take it as a warning? Is it time to put our contingency plans into operation?

"The Irish Central Bank is keeping them afloat after ECB said: ‘We won’t lend you any more’ Collapse would trigger €440bn bank guarantee... but IMF has option of locking the banks’ doors."

I'm not allowed to post any links yet, but I'm sure the article can be found easily enough.

Try this:

dailymail.co.uk/news/article-1331690/Banks-Ireland-brink-collapse.html?ito=feeds-newsxml

The MoS article, is sensational in nature, but does contain some accuracies.

The ECB have stopped providing liquidity to AIB, Anglo and INBS as they have nothing left to repo. The ECB are still providing liquidity to BOI, IL&P and EBS for now.

AIB, Anglo and INBS have turned to the ICB for liquidity. The ICB has had their liquidity capped at 35 billion (Source: Sunday Tribune). There are suggestions that the banks may be close to full using up this liquidity also.

The question then remains as to where the banks will get liquidity, to stay solvent, if the ICB and ECB funds are fully utilised. The answer seems to be the IMF, provided a bailout takes place. For AIB, the bailout needs to happen soon.

Its too late for AIB now, this institution is being marked as a bad egg by many in Europe. The IMF will make it a priority to merge the AIB with another Irish bank, or have it taken over completly by another far more reputable foreign bank. Redundancies will off course follow at AIB.