Kieran O'Donnell (Limerick East, Fine Gael)

It would be funded so as to enable it to meet its requirements in terms of being solvent. It would no longer be operating as a commercial bank in the markets. The bad bank would effectively function as a debt collection agency, while allowing the new, good, bank to function.

The problem is that the international markets do no accept that €7 billion is sufficient funding for AIB and Bank of Ireland. For example, Citigroup has predicted the two banks will require an additional €3 billion between them. This cannot be ignored.

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