Allied Irish, Bank of Ireland Bonds Plunge Amid Bailout Concern
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Allied Irish Banks Plc and Bank of Ireland Plc’s senior debt slumped on concern the government will force some of the cost of bailing out the country’s banks onto senior bondholders.
European Union and International Monetary Fund officials are taking legal advice on how senior bondholders can share the cost of Ireland’s 85 billion-euro ($113 billion) bailout without triggering lawsuits, the Irish Times reported today, without saying where it got the information. Negotiators plan to finalize the aid package on Nov. 28 before markets re-open after the weekend, an EU official said on condition of anonymity.