Dáil approves bank guarantee scheme

The Irish Independent reports that the Dáil has approved the government’s bank guarantee scheme. “The Dail has approved the bank guarantee scheme by 114 – 22 votes. Both Labour and Sinn Fein voted against the government and accused the Finance Minister Brian Lenihan of being soft on the banks. 6 Irish and 5 foreign owned banks based here will have their loans and deposits guaranteed under the plan. In return, they will pay the Government one billion euro over the next two years. Fine Gael described this figure as ‘surprisingly low’. Brian Lenihan said the scheme, which will also see the salaries and bonuses of bank executives capped, contains enough conditions to protect the interests of the tax payers.”