Did (does?) Michael Noonan support haircutting guaranteed depositors in Cyprus?

noonanThis is well worth reading : http://t.co/7xKBLBaEhc . The account suggests he did. Whatever about the merits, and there are some, of bailing in large depositors, pretty much everyone agrees that the idea of hitting deposits that were believed to be guaranteed was a dumb idea. Let’s also ignore the confusion on from where the idea emenated. Nobody apart from the French seemed to say “hang on now this is a plan full of stoopid”. Given that the Irish economy is by no means ouf the woods and our banks may require further recapitalization,  a statement by Michael Noonan would be helpful. Did he support the plan to cut guaranteed deposits? If he did then its a very worrying sign both if frank economic misjudgement and a worrying willingness to engage in financial repression of a pretty savage kind. Note also that under the radar Spain has introduced a deposit tax. Yes, its small and yes its to be paid by the banks (will that last) not the customers but…

Note: the department of Finance welcomed the initial plan….Feel more confident now?


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