Irish governor says senior creditors must take share of losses
The governor of the Central Bank of Ireland, Patrick Honohan, called for losses to be imposed on the senior creditors of failing banks in a speech delivered today (September 7).
"Losses should be shared by both junior and senior creditors where necessary – unless the amounts involved are small – in cases where the banks are put into resolution," he said. Speaking at a Money Macro and Finance research group conference at Trinity College in Dublin, Honohan rejected the idea of socialising losses
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