Bailing out Anglo’s depositors was not an act of undiluted patriotism

THE Taoiseach takes umbrage at being accused of “economic treason” arising from his part in the decision to rescue Anglo Irish Bank by guaranteeing not only deposits, but also the amounts owing to bondholders. At that time we were told repeatedly the bank had to be saved because it was of its “systemic” importance. How things change.

There is no more mention of its systemic importance. Now we are told it must be supported because it would cost too much to close.

Of course, the reason why it would cost too much to close is that depositors and bondholders have been guaranteed and the full weight of the costs of closure would fall on the neck of the taxpayer. Where is the systemic importance of the bank now, when so many bemoan the fact that it cannot be closed quickly enough? It was never of systemic importance. Many commentators insist its rescue was, at best, a kneejerk reaction to save an institution that was near and dear to the hearts of Fianna Fáil and its supporters, and for no better reason. The bank’s rescue cannot be regarded as an act of undiluted patriotism, whatever about treason.