AIB Scandal

About AIB Scandal

Allied Irish Banks was one of Irelands largest banks. AIB and Bank of Ireland dominated Irish banking during the Celtic Tiger boom. Irish banks lent aggressively against commercial and residential property. When the property bubble burst in 2008, Irish banks faced enormous losses. The Irish government guaranteed all bank deposits and debts on September 30, 2008, a decision that ultimately cost 64 billion, about 40 percent of Irish GDP. Ireland was forced into a bailout by the EU and IMF in 2010. AIB was effectively nationalized, with the government owning over 99 percent. Ireland exited the bailout in 2013. The Irish banking crisis is considered one of the costliest in history relative to GDP.