Tuesday, March 12, 2013

Offer not applicable in Ireland

Sorry for repeating the title but here we have Monday's New York Times --

The European Central Bank’s recent decision to let Ireland liquidate the successor bank to Anglo Irish in a way that wiped out remaining bondholders was in the same vein [as Dutch wipe out of SNS Reaal subordinated bondholders]. That move was flagged in advance, though, and the amount lost by investors was negligible compared to the SNS takeover.

There's a risk that people reading statements of ECB officials and the business pages could get the impression that Ireland was tough on bank bondholders.

It wasn't.