Ireland's largest bank, Allied Irish Banks PLC, reported a 61% drop in 2008 net profit as its written-off debts soared amid crumbling property markets in Ireland and the U.K. Allied Irish--which has subsidiaries or stakes in banks in 12 further countries, including the U.K., the U.S., and Poland--said its 2008 net profit fell to €767 million ($972 million) from €1.95 billion in 2007. The Dublin-based bank said €15.5 billion of its loans, or 12% of its total book, faced a risk of future payment failures, with 80% of that in Ireland.

A New York private-equity group, KPS Capital Partners LP, agreed to buy the Irish and U.K. operations of Waterford Wedgwood PLC, the historic ceramics-and-crystal maker that was placed in a form of bankruptcy in January, The Wall Street Journal reported. The deal was announced by accounting firm Deloitte LLP, which has been trying to sell the company since it was placed in administration Jan. 5 after years of heavy losses under its former chairman and major shareholder, Irish businessman Sir Anthony O'Reilly.

Irish police and fraud investigators raided the central Dublin offices of Anglo Irish Bank Corp. Tuesday, signaling an intensifying inquiry into the now-nationalized bank and more woes for Ireland's financial sector, The Wall Street Journal reported. Shares in Irish banks fell sharply Tuesday after about two dozen officials, including officers from the Irish police force's fraud bureau, entered the bank's offices at about 10 a.m. local time to search for computers and documents.

Fears are growing that Ireland could default on its national debt after the cost to insure against possible losses on loans to the country rose to record highs at the end of last week, The Guardian reported. Credit ratings agency Moody's recently followed rival Standard & Poor's in warning it might downgrade Irish debt, amid fears that one of Europe's former success stories is falling into a deepening recession.

Ireland’s Ulster Bank has today launched what it terms "a new initiative designed to help potential home buyers onto the property ladder”, Finfacts.com reported. The Ulster Bank Secure Step Mortgage gives customers access to the local housing market with a five-year protection against falling house prices. The Secure Step Mortgage is being launched in conjunction with residential property developers from across Ireland and is available to first-time buyers and customers trading up.

U.S. private-equity firm KPS Capital Partners LP has signed a letter of intent to acquire certain assets of Waterford Wedgwood PLC, the historic crystal and ceramic maker that filed for insolvency this week, the group's administrators, Deloitte LLP, said Thursday. Deloitte said it was continuing to talk to other potential buyers as well, The Wall Street Journal reported. Deloitte and KPS officials said they couldn't comment on the size of the potential deal.

The Irish government has indicated that it may be ready to help current and former Ireland-based employees of Waterford Wedgwood to secure their pensions, after the luxury tableware company was put into receivership this week, the Financial Times reported. Waterford Wedgwood had a pension deficit of €111 million (£100 million) on October 4 which, together with its debts of just less than €450 million, are seen as the main issue for any prospective buyer.

Talks to salvage Waterford Wedgwood were under way with at least three US parties on Monday night after the owner of the historic crystal and porcelain brands was forced into receivership, the Financial Times reported. Lenders, led by Bank of America, called in their loans to the company, which can trace its roots back to 1759, after talks with a US private equity investor collapsed at the weekend.

Waterford Wedgwood Plc received protection from creditors after losing money for five years and failing to find a buyer, threatening an Irish crystal-making heritage that dates back to 1759, Bloomberg reported. As many as 1,900 Irish and British jobs may be at risk if no buyer emerges. Deloitte Ireland was appointed as receiver for the company and some local units, Dublin-based Waterford said today in a statement. Its shares were suspended in Dublin.

Little Bird, a Dublin film company whose credits include Bridget Jones’s Diary, Into the West and Ordinary Decent Criminal, has gone into receivership after failing to raise funds, The Sunday Business Post reported. Kieran Wallace, an accountant with KPMG in Dublin, has been installed as receiver of Little Bird Holdings. The group consists of 32 companies in five countries, many of which are continuing to trade.