With all that money sloshing around in the State coffers, you've got to hope the Government manages its finances better than it manages the sale of its financial institutions.

Miscalculations over the best way ahead for each of the three State banks - TSB, ICC and ACC - has led to a series of embarrassing reversals. First ICC failed to attract much interest or a realistic offer price despite its perceived strength in small business; now TSB and ACC have failed to cement their merger.

There is a distinct feeling abroad that politics rather than business has been the root cause of the failures. This is particularly so for TSB, the sale of which has been a much-kicked political football for successive governments of all political hues.

More worldly wise as a result, it was quick to pull the plug when an initial plan to merge and float at the same time appeared to lose favour with the Minister before Christmas.

Now the Government is stuck with unwanted institutions in a less favourable climate for the financial services sector, a floundering privatisation programme and the realisation that the provisions it sought to insert into any sale contract to minimise the political fallout have rebounded. In true political fashion, however, the Minister has left it to the banks themselves to plot their way out of the morass . . .