This is extraordinary, if A Fistful of Euros is explaining it correctly. Dublin, AFOE says, has made

a dramatic government announcement that it is providing a public guarantee to all liabilities of banks with their HQs in the Republic of Ireland. That means every debt that these banks have to anyone: to their depositors, interbank lenders, and bondholders.

This sweeping guarantee far exceeds that of deposit insurance, and means that any wholesale lending to the Irish banks — the part of the banking system that is nearly stalled at the moment — is now secured by the Irish taxpayer. But foreign banks operating in Ireland, including Ulster Bank (owned by RBS), Rabobank (Dutch), and Postbank (part owned by, er, Fortis) are not covered. Any wholesale lender to these banks now has a strong incentive to switch to one of the six Irish HQ’d banks to get the guarantee.

The Brits aren't too happy about it, either, as the Times explains. Britain's deposit insurance is far less generous than the new Irish guarantee or U.S. deposit insurance. This'll persuade Brits to pull money from Barclays and whatnot and put it in British branches of Allied Irish and other banks.

Question: If Allied Irish still owned Baltimore-based Allfirst and Allfirst went bust, would Allfirst depositors exceeding U.S. guarantees be covered by the new Irish pledge?