Former ECB chief denies telling Ireland to save banks or bondholders

The former President of the European Central Bank has denied he phoned Brian Lenihan in the days before the bank guarantee and told him to save the banks at all costs.

Former European Central Bank chief Jean-Claude Trichet has flatly denied claims that he ordered Ireland’s finance minister to save the country’s banks at all costs three days before a controversial blanket guarantee.

Questioned by a parliamentary inquiry into Ireland’s banking crisis, Mr Trichet said the first he learned about the €440 billion bailout of six lenders – two of which later collapsed – was through the media.