Cost To Save The Irish Banking Sector Still A Huge Mystery
Technology Editor, CNBC.com
Apparently no one knows just how bad off the Irish banking sector really is.
Or at least none of the responsible officials will say just how bad things are on the Emerald Isle, which reinforces the notion that it's still, well, really bad.
Ireland's Finance Minister Brian Lenihan, who recently announced a plan to wind down the country's most troubled bank, the Anglo Irish Bank , could not give CNBC's anchor Stephen Sedgwick, who recently met with Lenihan, a number on just how big the Irish banking black hole is.
But Lenihan isn't the only one who is either clueless or keeping mum.
Neither the National Treasury Agency nor the Labour Opposition would give Sedgwick an estimation.
In fact, Standard & Poors rating agency is the only one who is putting a price on the cost to support the Irish Banking Sector. What's the S&P's estimation of the damage? Well, they're preparing for the worst and pinning a tail on the donkey at 90 billion euros or $114.3 billion.
To put that in context, Ireland's GDP is estimated at $268 billion. That means Ireland's banks could have a capital hole equal to 42% of the country's GDP.
Maybe that's why nobody else wants to give us a hard number. > Read More at CNBC.com