Debate reignites on issue of bond haircuts in Ireland

The ECB’s Trichet warned strongly against any haircuts for senior bond holders as that would reward speculators over investors but as the Irish election heats up, all sides seem intent on some form of re-negotiation. The present finance minister, Brian Lenihan, is being quoted over Reuters as saying that deabte on the issue of discounting unguaranteed senior bank debt was still open. The likely new finance minister, Michael Noonan, says that there is an enormous amount of stuff still on the table and that significant moves will be made before or at the March 24-25 EU summit.