Lenihan to inflict pain on investors

FINANCE Minister Brian Lenihan is about to inflict more pain on bank investors. Unless they take it, analysts say worse may follow.

Junior bondholders in Dublin-based Allied Irish Banks Plc will decide this week on an offer to buy back more than $5 billion of subordinated debt at 30% of face value.

Analysts at BNP Paribas SA recommend investors accept the package or risk getting “the stick” after the Government passed laws allowing it to reduce payments to bondholders.