EU Says Irish Rescue Deal to Create Fund, May Restructure Banks

European Union finance ministers said a rescue agreement for Ireland will create a capital fund for the country’s banks and may end up “restructuring” the financial industry.

“The programme will also include a fund for potential future capital needs of the banking sector,” the finance ministers said in an e-mailed statement after a conference call today. “By building on the measures already taken by Ireland to address stress in its banking sector, a comprehensive range of measures –- including deleveraging and restructuring of the banking sector –- will contribute to ensuring that the banking system performs its role in the functioning of the economy.”