European Commission tell Denmark don't pay bondholders, so why are we?

vanla sighs

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The Danes sought clarity from the EC regarding bondholders. The European Commission have told the Danes that in the event of a bank failure that they should not bail out bondholders but rather let them take the hit. So, if the EC have told Denmark this is the course of action they should follow then why the hell are we bailing out the bondholders? The EC issued those guidlines last Friday.

Just heard David McWilliams talking about it on Newstalk.

Maybe others have raised this topic before but this is the first I've heard of the EC having issued guidelines on it. Thanks.
 


ballot stuffer

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We have to make sure Abramovich can afford a new ivory back scratcher.
 

Ulster-Lad

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Surely all the more reason not to repay bondholders - unless they are the ECB themselves ?
The ECB has been buying large amounts of our bonds. What do you think has kept them artificially lower then what they should be?
 

vanla sighs

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difference is we are in the euro, denmark is not
No offence but wtf difference does that make? Both Denmark and Ireland are EU States. The advice came from the EC not the ECB.
 

Goodbody

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Ireland is relying on the ECB to bail it out. Denmark is not.

Most Irish bank bonds are held by EU banks. The ECB does not want them to take a hit. Therefore Ireland obeys the ECB's wishes.
 

CookieMonster

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Ireland is relying on the ECB to bail it out. Denmark is not.

Most Irish bank bonds are held by EU banks. The ECB does not want them to take a hit. Therefore Ireland obeys the ECB's wishes.
European Commission ≠ European Central Bank.
 

maxthedog

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Ireland is relying on the ECB to bail it out. Denmark is not.

Most Irish bank bonds are held by EU banks. The ECB does not want them to take a hit. Therefore Ireland obeys the ECB's wishes.
So who are Denmarks bondholders?
 

Goodbody

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The other reason given this week by the Financial Times for Ireland's timidness was that the powerful (international) banking & hedge fund lobby has kowtowed the Irish govt, threatening expensive and high-profile lawsuits. As the FT says, government ministers tend to believe the most recent advice that they have received.
 

Expatriot

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difference is we are in the euro, denmark is not
And the laws of capitalism dont apply in the Euro?

Get real.

Its lehmans,ebbs and flows, de markets, bankers, global warming, etc etc.

What is the real reason?

The Euro has exactly nothing to do with whether Ireland raises a tax for a generation to repay bond holder in a non-existant bank. Nothing. The EU were not even told we were going to do this and they went ape when they heard what we did the following morning so you can stop blaming them.
 

jpc

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Isn't the main difference that we are already committed?
On what advice though?
Remember we were initially informed "its the cheapest yet!"Then it became 4 bn and now its north of 34 bn.
So again who made the commitment and on what advice/facts?
Remember these guys are meant to be professional investors.
 

Expatriot

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Isn't the main difference that we are already committed?
In a word, yes. We should not be but we probably are legally tied to paying these guys. That is 110% our own fault. We even brought in a law to hand ourselves which the opposition in large numbers supported. Great country.
 

maxthedog

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Also EU Banks. But Denmark doesn't give a flying frig what the ECB thinks.
So should the thread title be changed, "Denmark tells ECB to get stuffed".

Because this is begining to look like the road, FF should have tried.
 


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