WSJ reports Ireland's finance ministry said it will inject 5.5 billion euros ($7.66 billion) into three banks and take large stakes in them, days after a loan-accounting scandal at Anglo Irish Bank further weakened the country's already fragile banking sector.
The government said it would make an initial investment of 1.5 billion euros in Anglo Irish in exchange for preference shares that will give it 75% of the voting rights of the bank. It said it was ready to invest additional money in the bank "if required so that it remains a sound and viable institution."
The government will also invest 2 billion euros each in Bank of Ireland (IRE) and Allied Irish Banks (AIB), in exchange for 25% of the voting rights of each bank. The government said it was making the investments to "ensure that the financial system in Ireland meets the everyday financial needs of individuals, businesses and the overall economy." (See 7:24 comment for additional detail)