Irish bail-out fails to quell bank worries
The cost of insuring against a default of Ireland's major banks went up today, despite yesterday's aid package agreed by parliament.
Five-year upfront credit default swaps (CDS) on Irish banks rose again today, despite the Irish parliament's approval yesterday of an €85 billion European Union/International Monetary Fund bail-out, including €35 billion to support Ireland's banking sector.
CDSs on Bank of Ireland rose steeply from 13.5% up front at 1.00pm UK time yesterday to 14.5% at 1.00pm today, an all-time high for the bank.
The upfront cost of protection against Allied Irish defaulting rose from 18.5% yesterday to 22.5%
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