Hey Ireland, You Are Doing Everything Wrong With Your Banks

Bank of Ireland

Ireland’s government has come under renewed criticism for its handling of the country’s banking crisis.

Peter Mathews testimony before Oireachtas Joint Committee on Finance and Public Service was scathing in its assault on the government’s decision-making suggesting that the National Asset Management Agency (NAMA) should be given up completely, according to the Irish Independent.

Mathews, who has been a vocal opponent of the government’s plan, called for the recapitalization of AIB, Bank of Ireland, and EBS and the winding up of Anglo Irish Bank and Irish Nationwide.

Anglo Irish Bank, Bank of Ireland, and AIB were all recently downgraded by Canada’s biggest ratings agency, even though they are a part of the NAMA plan, meant to provide a backstop for the banks.

Mathews isn’t the first to target the NAMA plan, with others suggesting it could send the country into a debt nightmare by 2012 when the debt to GDP ratio could be 115%.

Even the banking sector’s ability to take part in this plan has come under question, with Anglo Irish Bank failing to produce the paper work to transfer its debt to the government.

Here’s how Ireland got into this mess >

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