Gilmore: Bailout covers super-rich debt speculators

IRISH taxpayers will underwrite multi-billion-euro speculation by the super- rich, which are excluded from bank bailouts in other countries, Labour last night warned.

At least €10bn of the debts guaranteed by the Government’s controversial rescue scheme are the result of high-risk financial “gambles” by multi-millionaires, party leader Eamon Gilmore said.

The so-called “junior” debt sees rich speculators lend money to banks at very high interest rates on the understanding that if the bank goes under they will not be compensated.