Regulation a fiasco – and we all know who loses
SO the bondholders were burned after all? No? Oh yes they were. Burned big time. Not those bondholders, the other bondholders. Big bondholders guaranteed. Little bondholders burned to a cinder.
Venture capitalists, global dealers, even hedge funds walked away from the banking crisis unscathed although they held high-risk bonds in Anglo Irish Bank. More careful savers became bondholders in Custom House Capital. They have been pauperised.
Who is responsible for the different outcomes? In both cases, the Irish Government and the Irish Central Bank. Regulation Irish-style still works for the big battalions and leaves the small investor abandoned.