Irish Shares Tumble Amid International Uncertainty

Shares in Ireland's banks have fallen again following controversy over the US government's planned bail-out of its financial institutions.

Share values fell to an 11 year low, before a last minute scramble saw the market crawl back a 5.95% loss on the day.

The Irish markets had seen a recent resurgence last week following protective measures by the Government, with a ban intorduced on short selling and also raising official savings protection to €100,000.

However, unprecedented moves by the US President George Bush has caused widespread worry, with the United States Congress believed to be set to oppose his suggested $700 billion bailout.

Tempers have flared over the bail-out, which some members of Mr Bushes own Republican party have declared as "anti capitalist, and un-American."

However, speaking at the UN's Annual General Assembly debate, Mr Bush said other economies would suffer if the proposal wasn't accepted: "Our economies are more closely connected than ever before and I know that many of you here are watching how the United States government will address the problems in our financial system."

The $700 billion buyout would use taxpayers' money to purchase risk laden mortgage assets from the major lenders, and protect Americas financial institutions from collapse.

However, criticism over the plan has not stopped with Mr Bush's own party, with some critics pointing out the buyout would pay more than double for each asset, actually resulting in a huge windfall for the American lenders, funded from the American people's pockets.

Others are concerned the plan could put the entire American economy at risk.

The news comes as it emerges the FBI has launched an investigation in the four major US financial Institutions caught up in the current financial crisis, with alleged suspicions of fraud by mortgage giants Fannie Mae and Freddie Mac, the failed bank Lehman Brothers and insurer AIG.

(DW)