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Lenihan confirms to Burton: bulk of Anglo bondholders have already been bailed out


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Labour's Finance Spokesman Joan Burton has received a reply to a written parliamentary question to the Minister for Finance Brian Lenihan TD. The reply confirms to her that the bulk of Anglo Irish bondholders have already been bailed out.

The reply to Deputy Burton confirms that only €4bn of senior Anglo bonds, and €2.4bn of the subordinate debt remain which are not guaranteed by taxpayers.

The disclosures in this reply will greatly add to the public anger at the huge financial millstone that Fianna Fail has placed around the necks of successive generations of Irish taxpayers.
- Joan Burton TD

DÁIL QUESTION

NO 224

To ask the Minister for Finance the amount of senior and subordinated bonds outstanding in Anglo Irish Bank as at 29 September 2008; the amount of senior and subordinated bonds outstanding in Anglo Irish Bank as at 30 September 2008 which were covered by the Government guarantee; the amount of senior and subordinated bonds in Anglo Irish Bank which matured between 30 September 2008 and 29 September 2010 and since 29 September 2010; the amount of senior and subordinated bonds in Anglo Irish Bank bought back by the bank, and the capital gain registered as a result between 30 September 2008 and 29 September 2010 and since 29 September 2010; the amount of senior and subordinated bonds currently outstanding in Anglo Irish Bank covered by the eligible liabilities guarantee and outside the scope of the eligible liabilities guarantee; and if he will make a statement on the matter.

- Joan Burton.​
* For WRITTEN answer on Wednesday, 27th October, 2010.
Ref No: 39395/10

REPLY


Minister for Finance ( Mr Lenihan) : The information required by the Deputy is set out in the tables following:
Code:
1. The amount of Senior and Subordinated Bonds outstanding as at 
29 September 2008: 

[b]Debt			Amount[/b]
Senior Bonds:		€10,770,669,707
UK Covered Bonds:       €1,512,660,000
Subordinated Debt:      €4,791,653,500
Code:
2. The amount of Senior and Subordinated Bonds outstanding as at 
30 September 2008 which were covered by the government guarantee: 

[b]Debt			Amount[/b]
Senior Bonds:		€10,763,531,707  
UK Covered Bonds:       €1,512,660,000
Subordinated Debt:      €2,108,760,000
Code:
3. The amount of Senior and Subordinated Bonds which matured between 
30 September 2008 and 29 September 2010: 

[b]Debt			Amount[/b]
Senior Unsecured Debt:	€14.6bn
Subordinated Debt:     	€0
Code:
4. The amount of Senior and Subordinated Bonds that have matured since 
29 September 2010: 

[b]Debt			Amount[/b]
Senior Unsecured Debt:	€91m
Subordinated Debt:     	€0
Code:
5. The amount of Senior and Subordinated Bonds bought-back by the Bank 
and the associated capital gain(s) for the period 
of 30 September 2008 – 29 September 2010: 

[b]Debt			Amount		Gain[/b]
Senior Unsecured Debt	€177.6 m	€6 m
Subordinated Debt	€2.45bn		€1,752 m
Code:
6. The amount of Senior and Subordinated Bonds that have been bought-back 
by the Bank and the associated capital gain(s) for the 
period commencing 29 September 2010: 

There has been no buy back of either senior or subordinated bonds in 
this period.
Code:
7. The amount of Senior and Subordinated Bonds currently outstanding in the 
Bank that are covered by the ELG scheme: 

[b]Debt			Amount[/b]
Senior Unsecured Debt:	€2.68bn  
Subordinated Debt:      €0
Code:
8. The amount of Senior and Subordinated Bonds currently outstanding in the 
Bank that are not covered by the ELG scheme: 

[b]Debt			Amount[/b]
Senior Unsecured Debt:	€4.00bn
Subordinated Debt:      €2.36bn
Notes:
  • Subordinated Debt can not be guaranteed under the ELG Scheme.
  • The bank has recently launched a liability management exercise in relation to its subordinated debt.
  • Unless stated otherwise, exchange rates as of 21 October 2011 have been used in order to provide a corresponding euro equivalent.
 

Goldencircle

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Complete disgrace, a mixture of treachery and stupidity.
The history books will not look favourably on Brain Lenihan.
 

Asparagus

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Did i lose a year?

Its daylight robbery.
 
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The Caped Cod

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Complete disgrace, a mixture of treachery and stupidity.
The history books will not look favourably on Brain Lenihan.
I imagine they will, as they will most likely be printed by Folens.
 

nonpartyboy

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Hardly surprising, sure the man's a traitor or an imbecile. You decide ?
 

Keith-M

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If they hadn't we wouldn't be allowed to borrow. Once we made the commitment, we were toast. The question is why was the original commitment made?
 

nuj

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Do you mean repaid according to guarantee, or "bailed out"? There is a difference (unless you're Brian or Constantin or Peter).

There are enough threads on the guarantee, I'd have thought.
 
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Squib

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If they hadn't we wouldn't be allowed to borrow. Once we made the commitment, we were toast. The question is why was the original commitment made?
Do you think we can borrow now?

All Lenihan managed to do was to stall the dreadful day by turning a private bank's gambling debts into the Irish public's debts.
 

olamp

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An absolutely disgraceful "hit and run " on our country .Lenihan should be put in stocks and let the people vent their rage on him

And it took Joan Burton to drag the truth from him!
 

Nipper

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Job done, expect Cowen to be heading up to the park pretty soon.
 

DCon

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Once we made the commitment, we were toast. The question is why was the original commitment made?
the real question is, what members of the Irish elite twisted Lenihan's arm.
 

MPB

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So all the bondholders got bailed out and yet our sovereign bonds have an interest rate of 7% attached.

Before we gave the guarantee we had an interest rate of 3% odd.

Yet we were told that bailing out the Banks bondholders was the only way to appease the sovereign bondmarkets.

How is that one working out for all the FF quack jobs on this site?
 

cyberianpan

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Do you mean repaid according to guarantee, or "bailed out"? There is a difference (unless you're Brian or Constantin or Peter).
.
Indeed

We guaranteed a bank with a lot of short term senior debt.... it is no surprise that this turned over during the guarantee period. This is news to only the slowest of slow learners

cYp
 

DCon

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Job done, expect Cowen to be heading up to the park pretty soon.
Indeed. They got away with it. The perfect crime.

They can now let the government fall by either (a) scrapping Metro North and allowing the Greens walk or (b) commanding some back-benchers to walk over the budget.
 

Sensible Head

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the real question is, what members of the Irish elite twisted Lenihan's arm.
This is the bit i'm only getting to read about these last two days.

Seen walking the corridors of Leinster house on the 28th and all that.
 

Nipper

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This is the bit i'm only getting to read about these last two days.

Seen walking the corridors of Leinster house on the 28th and all that.

I am sure we will have another Tribunal in a couple of years to make sure they walk away from this one too.
 

Hewson

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the real question is, what members of the Irish elite twisted Lenihan's arm.
Your great-grandchildren may have that revealed to them in the Sunday papers in 2060.

Regardless of whether the Government made the decision on the guarantee based on the lies of bankers (most likely) or otherwise, what they effectively did that night was take a punt on the future of this island. They lost. We lost. Personally I believe Lenihan had absolutely no idea of the scale of the problem the banks had landed on his desk with the clock ticking down to zero hour, and they weren't about to tell him. Even when the Government thought that 4 billion would sort out Anglo, Cowen was against nationalising it. He reportedly said 'we're not f**king nationalising Anglo', and banged the table.

So they nationalised Anglo.

BoI shares are 55 cents today. And they're our better bank.
 
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