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Barely noticed yesterday was Irish finmin Noonan's call for senior bondholders in Allied Irish...

Barely noticed yesterday was Irish finmin Noonan's call for senior bondholders in Allied Irish Banks (AIB) to take their share of losses. The announcement was made ahead of a meeting with Tim Geithner - a champion of the "no bond losses ever" policy. "Noonan must be kidding," says a U.K. economist.
Comments (1)
  • Jolly_Rancher
    , contributor
    Comments (546) | Send Message
     
    Let's see if we can get this straight. Banks needs to take losses. Government needs to take losses. Stockholders need to take losses. But bondholders, whose job it is to assess risk BEFORE handing out their money, aren't supposed to take losses even though they didn't bother to take a single ounce of precaution before making loans for some of the most bubblicious of economic purposes and to those with the weakest balance sheets imaginable. If I remember correctly from finance 101, bondholders put their money at risk the moment it leaves their pockets.
    16 Jun 2011, 08:56 AM Reply Like
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