BBC News - Ulster Bank: Treasury looks at Irish takeover possibility
The UK gov is exploring the idea of giving Ulster Bank to the Irish state in exchange for Nama's UK based assets.
Seems like a bad deal on the face of it.Mr Peston said that one idea raised is to "transfer Ulster Bank into the arms and ownership of the Irish government", by swapping all or part of the bank for the British loans and investments currently owned by Ireland's "bad bank", the National Asset Management Agency (Nama).
Nama manages problem debts on behalf of the Irish government.
Northern Ireland finance minister Sammy Wilson said that Ulster Bank needed to be "divided up into a good bank and a bad bank".
However, he said there were "other options" apart from an Irish government takeover and that he wished to discuss these with the Treasury and the Northern Ireland enterprise minister Arlene Foster on Tuesday.
"Whether or not letting the Irish government take it over is the correct way of dividing the bank up is another matter," he added.