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ECB on u-turn decision to burn bondholders (too late for Ireland though)

  • 18-07-2012 10:01am
    #1
    Ghandee
    Closed Accounts Posts: 6,653 ✭✭✭


    Unbelievably, the very thing Noonan told us would never happen, looks like its just about to....


    THE European Central Bank (ECB) has dramatically shifted its position on the so-called "burning of senior bondholders" in banks, but it comes too late to directly benefit Irish taxpayers. The ECB is now willing to look at imposing losses on senior lenders in some of the failed Spanish banks, officials said yesterday, confirming a report in yesterday's 'Wall Street Journal'. Senior bondholders were investors at the front of the queue to be repaid by a failed bank. Senior bonds are loans to banks, usually by pension funds, that had to be paid back even if the bank collapsed. Alongside customer deposits they were considered the safest type of investment by pension funds in banks. The U-turn comes after all but €160m of Anglo Irish Bank's more than €10bn of senior bonds have been repaid, meaning it's too late for Ireland to gain materially by "bailing-in" senior lenders here.


    http://www.independent.ie/business/european/ecb-now-willing-to-let-senior-bondholders-burn-in-policy-shift-3171013.html

    Hopefully this will eventually trickle down to benefit tax payers here in someway,
    but it looks for now, like Ireland got shafted yet again.


Comments

  • #2
    Varied
    Closed Accounts Posts: 725 ✭✭✭Varied


    I'm going to love seeing how the shills will explain away this one. :D


  • #3
    Wacker The Attacker
    Closed Accounts Posts: 7,473 ✭✭✭Wacker The Attacker


    Why do you have to pay back a collapsed bank?


  • #4
    Ghandee
    Closed Accounts Posts: 6,653 ✭✭✭Ghandee


    Wacker The Attacker wrote: »
    Why do you have to pay back a collapsed bank?

    Because ‘we won't have the word defaulter stamped on our foreheads‘ ?


  • #5
    Wacker The Attacker
    Closed Accounts Posts: 7,473 ✭✭✭Wacker The Attacker


    Ghandee wrote: »
    Because ‘we won't have the word defaulter stamped on our foreheads‘ ?


    It says in the article that senior bonds have to repaid even if the bank collapses.

    I want to know why youd have defaulter stamped on your forehead for failing to pay something that doesnt exist anymore?


  • #6
    Ghandee
    Closed Accounts Posts: 6,653 ✭✭✭Ghandee


    Wacker The Attacker wrote: »
    It says in the article that senior bonds have to repaid even if the bank collapses.

    I want to know why youd have defaulter stamped on your forehead for failing to pay something that doesnt exist anymore?

    We paid Anglos bondholders back.

    A bank that should've been allowed to collapse.


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  • #7
    ejmaztec
    Registered Users, Registered Users 2 Posts: 24,134 ✭✭✭✭ejmaztec


    The ECB can get around it being too late for Ireland by writing off some of what Ireland owes the ECB.


  • #8
    fishy fishy
    Registered Users Posts: 3,456 ✭✭✭fishy fishy


    well, there were people there screaming about paying the bondholders, but the Irish people decided to go ahead and vote in the govt to pay them anyway

    you deserve the govt you get.


  • #9
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    seems like France looking out for their Iberian neighbours.


  • #10
    AnonoBoy
    Closed Accounts Posts: 22,559 ✭✭✭✭AnonoBoy


    Well you know what they say....

    eh......


    ..... it's an ill wind that burns no bondholders mar dho thintean fein.


  • #11
    ejmaztec
    Registered Users, Registered Users 2 Posts: 24,134 ✭✭✭✭ejmaztec


    fishy fishy wrote: »
    well, there were people there screaming about paying the bondholders, but the Irish people decided to go ahead and vote in the govt to pay them anyway

    you deserve the govt you get.

    It was all a done deal before the latest bunch of **** got elected.


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  • #12
    Dyr
    Registered Users, Registered Users 2 Posts: 23,246 ✭✭✭✭Dyr


    "Paging Scofflaw to after hours, clean up required in thread six" :pac:


  • #13
    ejmaztec
    Registered Users, Registered Users 2 Posts: 24,134 ✭✭✭✭ejmaztec


    Bambi wrote: »
    "Paging Scofflaw to after hours, clean up required in thread six" :pac:

    Cleaning up moderately might not be enough, needs concentrated Domestos.:eek:


  • #14
    fishy fishy
    Registered Users Posts: 3,456 ✭✭✭fishy fishy


    ejmaztec wrote: »
    It was all a done deal before the latest bunch of **** got elected.

    not remember ends kinny saying he wouldn't pay a red cent - and lo and behold he has the purse wide open for them.

    they were being told day and night not to do it - but the licks*se country that we are didn't even put up a fight - now that the "big countries" are doing it, it's okay

    we really would need to wake up in this place and stop acting like the class fools.


  • #15
    Ghandee
    Closed Accounts Posts: 6,653 ✭✭✭Ghandee


    Its only OK to do something when its not Ireland doing it.......


  • #16
    ejmaztec
    Registered Users, Registered Users 2 Posts: 24,134 ✭✭✭✭ejmaztec


    fishy fishy wrote: »
    not remember ends kinny saying he wouldn't pay a red cent - and lo and behold he has the purse wide open for them.

    they were being told day and night not to do it - but the licks*se country that we are didn't even put up a fight - now that the "big countries" are doing it, it's okay

    we really would need to wake up in this place and stop acting like the class fools.

    I don't think anyone believed him, and he only got elected by default because the opposition was dead in the water. He then proceeded to tell us that his hands were tied by the FF ECB/IMF deal and wriggled out like the worm he is.

    I still think that there will be an ECB write-down of Ireland's liabilities when things stabilise around the world, they'll have no choice because they know that Ireland can't afford to pay up.


  • #17
    Ray Palmer
    Registered Users, Registered Users 2 Posts: 8,453 ✭✭✭Ray Palmer


    Ghandee wrote: »
    Its only OK to do something when its not Ireland doing it.......
    People really don't get it.
    What can be done now couldn't be done then.
    There will be major consequences for burning bond holders. It is a last resort that may not work. A lot of pensions are going to wiped out.
    It is only putting off the problem still no magic money.
    We weren't allowed burn the bond holders we never had a choice. Whether we will get money for paying them back is the only question. Complaining we didn't burn them is pointless.


  • #18
    giant_midget
    Closed Accounts Posts: 1,162 ✭✭✭giant_midget


    Bambi wrote: »
    "Paging Scofflaw to after hours, clean up required in thread six" :pac:



    Cordially
    Giant_Midget :pac:


  • #19
    Wacker The Attacker
    Closed Accounts Posts: 7,473 ✭✭✭Wacker The Attacker


    Ghandee wrote: »
    We paid Anglos bondholders back.

    A bank that should've been allowed to collapse.

    Anglo didnt collapse. Whether it should have been allowed to collapse or not is a separate matter.


  • #20
    Wacker The Attacker
    Closed Accounts Posts: 7,473 ✭✭✭Wacker The Attacker


    the groutch wrote: »
    seems like France looking out for their Iberian neighbours.

    Perhaps its as much about self preservation as the preservation of their near nieghbours


  • #21
    SocSocPol
    Closed Accounts Posts: 1,043 ✭✭✭SocSocPol


    Point 1: Spanish law requires that the Bondholders get burned.
    Point 2: Spanish politicians and the Government in particular wern't
    dumb enough to issue a legally binding blanket guarentee on the banking system.
    My Point don't blame France,Germany, the ECB, or the IMF. Blame FF,Sinn Fein Fein and Labour, the three main parties who voted in the Dail in favour of the disasterous blanked banking Guarentee which has cost us so much money!


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