Ireland considers second SLO

23 Nov 2011

The dark side of capital generation was exposed again on Wednesday as the Irish government mooted the idea of wiping out the principal of six subordinated issues from Bank of Ireland. The Department of Finance has invited submissions on the use of a subordinated liabilities order on the bank’s debt.

An SLO was first seen earlier this year as a stick to encourage participation in Allied Irish Banks’ capital generating offer. This time the idea is being proposed as a way of targeting hold-outs from liability management exercises earlier in the year to generate the €350m that BoI ...

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