ECB feels left out of Irish bill

“ECB fears on Irish bank bill,” leads the Irish Times. In a report signed off by ECB president Jean-Claude Trichet, the European Central Bank has expressed “serious concerns” about Ireland’s controversial Credit Institutions (Stabilisation) Bill, passed in parliament on 15 December. The emergency legislation gives Ireland’s Minister of Finance Brian Lenihan sweeping powers until 2012 to reorganise Ireland’s crippled banking sector, including “the power to overrule shareholders, sack directors, impose losses on bondholders and transfer loans and deposits out of Irish banks.” The ECB is fearful of the risks involved in providing liquidity to Irish banks and is concerned that the bill could infringe on its own rights. “The most recent data show Irish banks having €136 billion in loans outstanding from the ECB – a quarter of the total in the euro zone”, the Dublin daily notes.