Banks, hedge funds may have to pay out on bond insurance

BANKS and hedge funds may have to pay out on Anglo Irish Bank debt insurance after the Government insisted holders of its riskiest bonds share the pain of a €30 billion bailout.

And the Anglo Irish rescue package will cost every man, woman and child in Ireland as much as €7,500 each.

The cost of credit-default swaps protecting Anglo Irish’s subordinated notes has more than doubled since September 1 on speculation of a payout.