One of Ireland's leading saving and loans institutions, the Educational Building Society (EBS), has been bailed out by the Irish government to the tune of $1 billion dollars after failing to attract private capital.
The state is set to invest the billion dollars over the next ten years to try and keep the EBS solvent.
The news came at EBS’ AGM, when the chairman announced the news and canceled the meeting.
The EBS is 75 years old and has long been among the most prominent savings and loan institutions in Ireland. The company had been seeking private capital to save them but none was forthcoming.
The bank has been negotiating with an investment consortium led by Cardinal Asset Management, which included US private equity firm JC Flowers. Those talks are continuing despite the government loan, but an agreement seems unlikely.
The Government’s will own 51 percent ownership of EBS after the cash injection.