Article: Shares fall a reality check on the banks

The litany of uncertainties hanging over the big two in Irish banking has reversed a rally that ran counter to fundamentals, writes JOHN McMANUS

IRISH BANK shares have comes back down to earth with a bump. This week saw the most precipitous declines, with AIB and Bank of Ireland down 26 per cent and 35 per cent respectively before yesterday. The trend, though, has been evident for several weeks, with both banks down almost 50 per cent from their recent highs.

No one reason explains the reversal but there is a consensus that banks shares are now back at a level more properly reflective of their difficulties and those of the wider economy.

The run-up in Irish bank shares post the ...

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