Nationalisation has 'downsides' - Ahearne
Economist Dr Alan Ahearne, who is advising to the Department of Finance, said there are “downsides” to bank nationalization and that it could send a bad message to markets.
"Nationalization has lots of downsides for a banking system like Ireland which relies on international funds,” Mr Ahearne, a former Federal Reserve economist, said at an event in Tullamore, Co Offaly today.
“Nationalization is often viewed from wholesale markets as a sign that the banking systems have completely failed. “
That’s a message the Government would not want to give out,” he said.