€7bn rescue plan for Ireland's banks

The Irish Government last night announced a revised bank recapitalisation, pumping 7 billion euro (£6.2 billion) into Allied Irish Banks and Bank of Ireland.
The money will be split equally in an attempt to shore up the two finance houses amid fears of failing loan books and massive share price falls.
Under the plan, senior executives' salaries will be slashed by a third, bonuses will not be paid and no pay rises will be handed out for last year or this year.
Non-executive directors will also take a 25% pay cut at least.

Finance Minister Brian Lenihan insisted the Government does not intend to take-over AIB and Bank of Ireland.
Instead the Government will take a holding in the bank through preference shares which can be bought in five years time at a low price if the banks stock market value increases.
"The State will not hold ordinary shares in either bank... but it will have an option to buy shares in five years time at a predetermined strike price, thus providing the State with the potential for a significant return," Mr Lenihan said.
The Government will also have the power to select a quarter of the boards in both banks.

In a short statement Bank of Ireland said: "The package of measures will enable Bank of Ireland to play a full role in supporting our customers and aiding economic recovery."
The Government also said home repossessions will be suspended under the deal.
The two banks, who loaned huge sums to first time buyers during Ireland's boom years, have agreed to stall legal action for six months after mortgage arrears begin.
Court cases to seize houses will be held off for a full year.
"The recapitalised banks have, in addition, assured Government that in the normal course of events they will make every effort to avoid repossessions," the minister said.

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