CENTRAL BANK GOVERNOR SAYS ANGLO SHOULD HAVE BEEN LIQUIDATED BEFORE GUARANTEE
The Banking Inquiry’s been told that guaranteeing all bank bondholders was a mistake.
Central Bank governor Patrick Honohan says the State shouldn’t have agreed to pay all junior bondholders at the six major banks.
Professor Honohan’s giving evidence to the inquiry, in its first hearing of the new year.
He says regulators believed the banks would effectively regulate themselves and the government should have pulled the plug on Anglo as soon as the crisis hit.