Minister for Finance Brian Lenihan said it was not a bail-out; the Opposition questioned aspects of the measure in a debate that will continue today.

Brian Lenihan opened the emergency debate by insisting that the measure was not aimed at protecting banks but at safeguarding the Irish economy.

It was not a bail out of the financial institutions concerned but was subject to terms and conditions, he said.

Mr Lenihan maintained that the exchequer was not exposed by the €400bn guarantee as in the final analysis the assets of the banks were worth €80bn more than that.

Fine Gael’s Richard Bruton said his party was supporting the bill because it prevented a potential run on the banks.

But it should provide for the Regulator appointing officers to sit on the banks credit committees so they did not take advantage of the guarantees.

He also questioned the criteria by which the six institutions concerned were chosen.

Labour’s Joan Burton suggested the pay of bank bosses who took advantage of the scheme should be capped at the level of the Taoiseach or Finance Minister.

Her colleague Pat Rabbitte said the bill might fall foul of competition law because of its exclusion of other institutions.

Fine Gaels Leo Varadkar said this was the only Tallaght strategy his party would extend to the government and woe betide ministers if a bank failed.

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