Main bank bondholders will not be burned

THE financial regulator Matthew Elderfield categorically ruled out any action to burn senior bondholders in the main Irish banks.

However, he did sayaction could be taken against senior bondholders in Anglo Irish Bank and Irish Nationwide, which are both being wound down. That was still “an open issue” he said in in London yesterday.

He said the Government would not take action to burn senior bondholders, an action that was promised during the election campaign by some who are now members of the Government Cabinet.