Rehn Spokesperson on Bank Senior Debt

On Morning Ireland a few hours ago, Amadeu Altfaj Tardio, Spokesman for the European Commissioner Olli Rehn, was asked by RTE’s Rachael English (about 5.08 minutes in) whether the EU would countenance senior bond holders sharing the burden as part of the Irish bailout.

Possibly Amadeu didn’t quite understand the question (though he was asked it twice in pretty clear terms.) Anyway, my understanding of his response was that he could countenance this type of burden sharing. He said the issue “was under discussion” though it seems as though he meant this in the sense of a general Euro-area policy in this area was being discussed, rather than that he knew that this issue was being discussed in the current Irish bailout negotiations.

Further clarifications on this issue should probably be sought.