Saturday 3 December 2016

We need to know why the ECB acted as it did

Published 27/01/2016 | 02:30

Irish citizens deserve to know why and how the banking system failed in all but name and the role that institutions here and in Europe played in that downfall
Irish citizens deserve to know why and how the banking system failed in all but name and the role that institutions here and in Europe played in that downfall

The decision to impose upon taxpayers the burden of supporting banks, while paying senior bondholders in full, is one of the most significant policy decisions undertaken in the wake of the financial crisis.

  • Go To

The IMF, one of the three wheels of the Troika, has stated in its post-bailout evaluations that Ireland could have saved billions if it had been allowed to "burn the bondholders".

In particular, it has stated that there may have been significant benefits for the Irish public had senior bondholders in the former Anglo Irish and Irish Nationwide banks been burned, noting that alternative policy actions to contain the risks from higher burden-sharing were available but were not pursued.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Read More

Don't Miss

Editor's Choice