Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Attorney General provided advice with regard to legislative arrangements in respect of the treatment of bondholders in resolution law. His advice is that in the context of such resolution regimes, it is possible - in appropriately drawn circumstances - to give priority to the investment of taxpayers over subordinated debt in a distressed institution. In the case of senior bondholders, however, it is not possible to give such a priority because, in our legal tradition and that of the United Kingdom, the holders of these instruments rank equally with deposit holders. In other words, they rank as general creditors. I do not want to use the Latin word lawyers always use in this context. I prefer to say that they rank equally or rateably with each other.

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