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Permanent TSB may fail stress tests

It's reported that one of the banks owned by the taxpayer is set to fail the EU's stress tests this...
TodayFM
TodayFM

6:16 AM - 24 Oct 2014



Permanent TSB may fail stress...

News

Permanent TSB may fail stress tests

TodayFM
TodayFM

6:16 AM - 24 Oct 2014



It's reported that one of the banks owned by the taxpayer is set to fail the EU's stress tests this weekend.

The European Central Bank is due to publish the results of the latest round of stress tests this Sunday.

And the news agency Bloomberg reports that Permanent TSB will fail under one of the three categories - with a shortfall of between 700 million and 800 million euro.

But the rules for bank bailouts have changed since the last time Ireland was hit, and the taxpayer will no longer foot the bill.

The Department of Finance isnÂ’t commenting on the story, but Michael Noonan said Permanent TSB would be able to borrow the money from investors.

The state can also turn some of its previous investment into a new bond - so while the taxpayerÂ’s 99% stake could well be watered down, there shouldnÂ’t be any new cost to the public.



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