Lenihan hints at pain for Anglo bondholders

FINANCE Minister Brian Lenihan has given the strongest indication yet that the riskiest lenders to Anglo Irish Bank will soon be told they will not get all their money back.

This could limit taxpayers’ exposure in the toxic bank by more than €1.2 billion.

Mr Lenihan explained the bank guarantee scheme would be extended once it ran out at the end of September. Amotion to this effect was passed by the cabinet this week.