The Irish government may be forced to take controlling stakes in Bank of Ireland Plc and Irish Life & Permanent Plc , the last of the country’s biggest lenders to escape state control, following tomorrow’s stress tests.
Irish Finance Minister Brian Lenihan needs to inject at least 5 billion euros ($6.8 billion) more cash into the country’s two biggest lenders immediately as part of Ireland’s international rescue, analysts said.
Irish Life & Permanent Plc, the country’s biggest mortgage lender, slumped as much as 19 percent in Dublin as investor concern grew that mortgage impairments are rising and the government might need a bailout.
Anglo Irish Bank Corp. , taken over by the government two years ago, said it expects to post a pretax loss of about 17.6 billion euros ($24 billion) in 2010, the largest corporate loss in the nation’s history.
Allied Irish Banks Plc , Ireland’s second-biggest bank, has tripled its reliance on funding from central banks since the end of June as companies and customers pulled money amid the country’s debt crisis.