Burn Anglo Irish Bank bondholders, says Joan Burton

Tánaiste Joan Burton has backed the outgoing central bank governor’s calls to burn Anglo Irish Bank junior bondholders and thereby save taxpayers up to €300m.

However, Finance Minister Michael Noonan said it may be years before it emerges if the investors in the bank will or will not be entitled to surplus funds from the liquidation of IBRC, formerly Anglo.

New correspondence shows governor Patrick Honohan telling Department of Finance officials that the moral case for the surplus money to be paid to junior bondholders is “almost unassailable”.