Fine Gael Call For Lenihan To Resign

The Minister of Finance has come under serious pressure from the opposition over the ongoing meltdown of Ireland's banking system.

Fine Gael's leader, Enda Kenny has formally called on Brian Lenihan to resign as Finance Minister following the latest revelations about Anglo Irish Bank.

It was revealed yesterday that Mr Lenihan had failed to fully read a report, which showed suspicious multi-billion euro payments into the Anglo Irish Bank by another bank, Irish Life & Permanent.

Mr Kenny told the Dáil this morning that Mr Lenihan should follow the Financial Regulator Pat Neary, who resigned mired in controversy over a €630,000 golden handshake.

Mr Enda said the Finance Ministers gesture of resignation should be made "in an act of patriotism".

Rubbing salt in the wounds, the government's recent proposals of the €7 billion bail-out for the Anglo-Irish along with the Bank of Ireland have been rubbished by another Fine Gael TD.

The opposition's Deputy Leader & Finance Spokesman Richard Bruton said the Government's recapitalisation proposals were "a €7 billion gamble on the wrong horse".

"This approach has not been successful in kick-starting lending in other economies. Given the unknown size of the bad debts in each bank, taxpayers are now in danger of putting in the huge sum of €7,000 million, but only have banks nurse along dodgy property loans, while continuing to starve viable businesses of access to credit. This will pump capital into unreformed and unreconstructed banks with bad debts," said Mr Bruton.

He added: "The Government announcement has barely moved on from the announcement made in December.

"Fine Gael regrets that a flat income cap has not been imposed on executive pay and the same team that brought us into this mess is apparently going to remain in place."

(DW/BMcC)