Sunday, February 13, 2011 6:09 PM

Irish Bailout Falls Short; Irish Debt Rating Cut to Junk by Moody’s; Power of the "Trump Card"

In the wake of the collapse of the Irish government, finance minister Brian Lenihan suspended capital injections for Allied Irish Bank, the Bank of Ireland, and EBS Building society until elections are held on February 25.

Fine Gael leader Enda Kenny said Anglo Irish Bank will not get another cent if his party is elected. However, the Chairman of Anglo Irish Bank said Anglo needs another €15bn.

In response, Irish Debt Rating Cut to Junk by Moody’s http://www.midasletter.com/index.php/ir ... by-moodys/

Moody’s cut the ratings of Irish banks to junk status on Friday following Dublin’s decision to defer previously agreed capital increases until after this month’s general election.

This follows similar action by Standard & Poor’s last week. http://tinyurl.com/4arhcms

Moody’s said recent announcements “call into question the government’s willingness to provide additional support to the banks beyond that which has already been provided to date, and reflect the increasing risk of some type of burden-sharing with senior creditors.â€