A draft paper a senior EU executive suggests that also senior debt holders would also take losses. This may apply to Allied Irish Banks (nyse:aib) and Bank of Ireland (nyse:ire).
Both AIB and the Bank of Ireland have already “enjoyed” such bad rumors, but now that it appears in an official paper, it means trouble. It seems that some in the EU are responding to the anger felt in the member countries – people aren’t willing to put more taxpayer money in order to cover for the banks’ mistakes.
Previous news about Allied Irish Bank and the Bank of Ireland:
- Allied Irish Bank to be Nationalized?
- Allied Irish Banks Scavenging Before Haircut
- Bank of Ireland Haircut
More details about the draft paper by the EU executive can be found at this Reuters report.
The Euro is down, but not due to its own troubles today, but rather because of excellent US data – both ADP NFP and Services PMI significantly exceeded expectations and boosted the US dollar.
EUR/USD suffered losses.