We need to know why the ECB acted as it did
Published 27/01/2016 | 02:30
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.
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.