Anglo Irish Bank has told David Drumm’s bankruptcy proceedings in the US that it intends to sue him for his role in the treatment of Seán FitzPatrick’s loans and other controversial matters at the bank, the Irish Times reported. The bank has said it is going to pursue a claim for breach of fiduciary duty against its former chief executive arising from alleged misconduct and deception.

Growing uncertainty over State banking policy and a greater chance that burden-sharing will be forced on bondholders have led Moody’s to downgrade the senior unsecured debt of the six domestic banks, the Irish Times reported. The rating agency said the move had stemmed from “statements from both the leading Opposition party and the incumbent finance minister”. The existing “supportive” policy in relation to Irish banks has been called into question, Moody’s said.

Barely two months old, Ireland's €67.5 billion ($91.76 billion) deal for an international bailout is showing signs of strain, and the party expected to take power in this month's elections is maneuvering to renegotiate its terms, The Wall Street Journal reported. European finance ministers meeting in Brussels this coming week are expected to discuss how the plan could be modified amid Irish concern that it is too burdensome. Ireland has griped about the interest rate and the fact that taxpayers are bearing the brunt of the losses of the Irish banks.

A third rate of income tax, a wealth tax on assets worth over €1 million, restructuring bank debts and capping the salaries of TDs and ministers are among the proposals in the Sinn Féin election manifesto launched in Dublin yesterday, the Irish Times reported. Launching the 40-page bilingual document, There is a Better Way – Tá Bealach Níos Fearr Ann, Sinn Féin leader Gerry Adams told a news conference that it aimed to create “an Ireland of equals”.

The man likely to be Ireland's next prime minister said the government should wait until a round of stress tests on the country's banks has been completed before recapitalizing them, expressing concern that they may still have a "black hole" on their balance sheets, The Wall Street Journal reported. In an interview, Enda Kenny said it would be "prudent and realistic" to wait until the stress tests had been completed "to see if there is another black hole in the banks" before they receive any new capital injections. Mr.

Permanent TSB’S decision to introduce immediate increases of between 2 and 3 per cent on its fixed interest rates for existing mortgage holders rolling off fixed or discounted rates has been described as “shocking”, the Irish Times reported. The bank announced last night it was increasing its two-year fixed term rate from 5.25 per cent to 7.25 per cent while the five-year fixed rate will go from 5.75 per cent to 8.75 per cent. A 10-year fixed rate will increase from 6.1 per cent to 9.1 per cent.

A report from Goodbody Stockbrokers has argued that the State cannot bear the losses from the banking crisis on its own, RTE News reported. In a report on Irish debt levels, Goodbody says there should be some form of risk-sharing with bondholders. But it adds that Ireland cannot do this on its own, and should push for a Europe-wide solution to the problem. Goodbody says some €21 billion of bank debt should be restructured now - otherwise there will have to be a restructuring of Irish sovereign debt some time after 2014.

Anglo Irish Bank, the reckless institution at the heart of Ireland's slide towards bankruptcy, has reported a preliminary euro17.6 billion ($24 billion) loss for 2010 - by far the worst in Irish corporate history, the Associated Press reported. State-owned Anglo revealed the staggering figure Tuesday after the Dublin High Court approved a government plan to merge Anglo with another bust bank, Irish Nationwide, within weeks. The court order permits both banks to auction off their surviving deposit bases to solvent Irish banks.

European Central Bank (ECB) chief Jean-Claude Trichet has reiterated his opposition to any debt restructuring by Ireland, saying the terms of the EU-IMF bailout plan for the State have been approved by “the entire world”, the Irish Times reported. Mr Trichet’s remarks before a committee of the European Parliament come against the backdrop of demands for the renegotiation of key elements of the deal by Fine Gael and Labour, which hope to be in government within weeks.

Ireland's main opposition party Fine Gael on Friday said the next government would be forced to "unilaterally" restructure the debt of Irish banks if agreement cannot be reached with Europe on senior bond holders sharing the cost of recapitalizing the country's insolvent banks, The Wall Street Journal reported. Fine Gael, the favourite to form the next coalition government, said ideally senior bond holders in nationalized banks, such as Anglo Irish Bank Corp. and Irish Nationwide Building Society, would be forced to share the burden through a Europe-wide framework.