The Dáil has tonight passed legislation to approve the nationalisation of Anglo Irish Bank.
The Bill was approved by a vote of 79 to 67 after a lengthy debate.
It is expected to be passed in the Seanad later tonight.
The Government sought to rush legislation through the Oireachtas today to execute the nationalisation of Anglo Irish Bank, which had been part of the recapitalisation scheme agreed only late last month.
Ahead of the debate, Taoiseach Brian Cowen sharply criticised the Opposition and others for questioning the Government's motives for nationalising the bank, warning that remarks could lead to a loss of confidence in the Irish banking system.
Mr Cowen said at the opening of today's debate that it was in the country's interest that the legislation be passed through the House without delay.
"The purposes of the introduction of this Bill today for its completion this evening is to ensure that we underpin stability in our financial system," said Mr Cowen.
Minister for Finance Brian Lenihan said the Government's move to nationalise Anglo Irish Bank had been taken to safeguard the economic future of the country and the continued viability of its financial institutions.
"The Government is determined to protect the taxpayer's interests by putting clear blue water between the new Anglo Irish bank and the unacceptable behaviour that has gone before," said Mr Lenihan.
"Anglo Irish Bank is a major financial institution, with a balance sheet in excess of €100 billion. There is no doubt that the viability of an institution of this scale is of systemic importance to Ireland. Contrary to the impression being put about, the bank lends to a wide range of customers providing funds for investment and employment in areas such as retail, office, leisure, healthcare, tourism and other services," he added.
Mr Lenihan said he had been advised that letting the bank fall would lead to "a very serious disruption of our financial system".
"The Central Bank, the Financial Regulator, the NTMA and our legal and financial advisers were unanimous in their advice to Government that strong and clear decisive action in the form of the nationalisation of Anglo was needed to maintain its commercial viability and that a failure to support the bank in this way would damage our financial system generally," he said.
"It is not a question a saving a few developers from going to the wall, it is a matter of underpinning deposit and wholesale funding throughout the financial system...the Government's actions have been made on the basis that the health of the economy is inextricably linked to the banking sector and vice versa," Mr Lenihan added.
"The decision to nationalise is a clear indication that the Irish Government is fully prepared to stand behind the Irish banking system and to demand and ensure proper governance. Our actions send one clear message to customers, investors, credit rating agencies and the markets generally that Ireland is a safe, secure place to do banking business," he concluded.
Opposition parties today complained that not enough time was being given to debate the legislation.
"We are not having the sort of debate that ought to be had in this House to make nationalisation a credible and well thought-out stress test strategy," said Fine Gael finance spokesman Richard Bruton.
"You have put this into such as tight framework that we can't do the job that the people think we are elected to do and that is to hold you to account and through you, to hold those in the instiututions behind you, to account."
Mr Bruton also accused the Government of "making up banking strategy on the hoof".
He said Fine Gael voted against the Government’s strategy for the re-nationalisation of Anglo Irish Bank in the Dáil this evening following "the failure of the Government to provide "necessary clarifications" on the legislation.
Mr Bruton cited issues such as the "level of taxpayers’ exposure under the Government plan, the transparency of the process for appointment of a new board and the absence of any clear strategy for the future of Anglo Irish Bank".
“Fine Gael is not satisfied that the Government’s strategy for the nationalisation of Anglo provides sufficient protection for the Irish taxpayer.
Mr Bruton said Fine Gael made clear last week, before the Government announcement, £the loss of trust in Anglo Irish Bank among the markets, the regulatory system and the wider public means that nationalisation of the bank is the only way to protect the wider Irish financial system".
Labour Party finance spokeswoman Joan Burton tabled an amendment requiring the Government to seek a High Court order under the Companies Act for the appointment of one or more inspectors to investigate the affairs of Anglo-Irish Bank.
Ms Burton said tonight Labour voted against the Anglo Irish Bank Corporation Bill 2009, because of what she said was the failure of the Government to provide any relevant information about the financial situation of the bank.
"Without this information it is impossible for public representatives to make a proper assessment of the investment they are being asked to make on behalf of taxpayers. The government has also refused to put in place appropriate procedures for any significant investigation into the activities of the bank so that we can ensure that any wrongdoing could be brought to light.
Sinn Féin Finance spokesman Arthur Morgan reiterated the party's commitment to the establishment of a state bank but said hit could not support the proposed legislation as Anglo Irish Bank is a "hopeless, poisonous institution".
"We support public ownership of a major banking institution, but this is not nationalisation in the public interest, it is simply a bail out for the former patrons of the now defunct Fianna Fáil Galway race tent," he said.
