Ireland's Fate Tied to Doomed Banks - WSJ.com

Ireland's Fate Tied to Doomed Banks - WSJ.com: "Liquidity, not capital, is the main issue in the current crisis," financial regulator Patrick Neary wrote to Kevin Cardiff, a top finance-department official, on Sept. 10. A week later, Anglo executives told government officials that the bank's core business, despite the cash crunch, was healthy: "Loan book remains strong," they said. And Merrill Lynch bankers working for the government advised that another lender, Irish Nationwide Building Society, could absorb any bad loans. (It has since needed €5.4 billion in bailout money.) Merrill and INBS declined to comment. Mr. Neary couldn't be reached for comment.?