Well, chuckled Pat Kenny, as his guests speculated on the identity of the mysterious bondholders, we can leave the Chechen Mafia to one side.
He was rightt.
It’s the Russian Mafia.
It now turns out that one bondholder of Irish Nationwide is Mr Roman Abramovich, billionaire owner of Chelsea FC.
Irish Nationwide, I might remind you, is not a bank but a building society, and yet is receiving €5 billion of your money to make sure that its bondholders don’t suffer thanks to the greed of Fingers Fingleton.
Now we learn that Abramovich is threatening to take legal action against Ireland if the government tries to make subordinated bondholders carry some of the losses of the collapse. Subordinated bondholders, I should add, are people who took a higher risk in the hope of a higher return. To put it another way, these are people who gambled on losing their money. Therefore, even if the government forces Abramovich to take a loss, he will still get back some of his bet, thanks to you, the taxpayer.
As I’ve said before, there was no need to bail out the investors in Irish Nationwide or Anglo-Irish Bank. It was a scam and a fraud.
As the December budget approaches, we face savage tax increases, and cuts in services to the old, the sick, the poor and the weak.
How do you feel about having less money in your pocket, longer and longer waiting times in A&E and potholed roads, to make sure Roman Abramovich and his pals in the Russian mob don’t lose out on their gamble?
Here’s an EU report on winding up Danish banks. It states that burden-sharing is ensured by excluding shareholders and subordinated debt holders of the failed bank from any benefit from the aid. It also confirms that this is in line with the Commissions guidelines.
So. If it’s acceptable for the Danes to stiff the subordinated bondholders, why would it be wrong for us to do so?