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Round-up: The latest round of Irish stress tests show banks will need an additional €24 billion in capital, taking the bailout total to €70 billion. Today’s number is within expectations, according to Dow Jones.Central Bank chiefs claim that headline €24 billion number will actually be less do to asset sales. They suggest the size of the support needed is a result of the “gloomy” projections included in the tests.
Here’s who needs the money:
- Anglo Irish Bank – €13.3 billion
- Bank of Ireland – €5.2 billion
- Irish Life and Permanent – €4 billion
- EBS – €1.5 billion
Under the country’s new restructuring plan, Bank of Ireland will remain an independent bank and AIB will absorb EBS.
EARLIER: Matthew Elderfield, head of financial regulation, says this headline number of €24 billion will be cut due to asset sales.
Central bank says loan loss estimates of €27.7 billion over three years, according to BlackRock, who conducted the tests.
The reason for the high capital numbers, according to Central Bank Governor Honohan, is that markets need to be convinced banks are prepared for even the “gloomy” scenarios.
Regulators say Irish banks need €24 billion more in capital.
Anglo Irish Bank needs an additional €13.3 billion in capital alone.
Bank of Ireland needs €5.2 billion more, pretty much in line with the early leak.
EBS needs €1.5 billion, and Irish Life and Permanent need an additional €4 billion.
The Irish Times has the final score on this, with a headline total of €70 billion for the banking sector bailout, including the €24 billion from today.
Note: The shortfall for Ireland’s banks is within expectations, according to Dow Jones.
Preview: Irish stress test results will be release at 11:30 AM ET, and we’ll have the full details for you when the arrive. We’ll be following the comments of Central Bank Patrick Honohan live here.
Some information has already started to leak out:
- Three Irish banks will need a total of $12.7 billion in aid
- Bank of Ireland will need €5 billion
- Irish Life and Permanent will need €3 billion
- EBS Building Society will need €1 billion
- Anglo Irish Bank reported a loss of €17.5 billion euros for its fiscal year 2010