The Vanguard Group Inc. is trying to allay investor concerns about the news that one of its subadvisers, Wellington Management Inc., has been subpoenaed by federal authorities in connection with an insider-trading probe.
OFFICIALS IN the EU-IMF mission to Dublin are examining how senior bondholders could be compelled to pay some of the cost of rescuing Ireland’s banks.
As talks on the €85 billion bailout deal intensify, the Government is trying to reduce the cost to the State by minimising the interest bill on the emergency loans.
In a statement last night, German chancellor Angela Merkel and French president Nicolas Sarkozy urged a speedy conclusion to the talks on the bailout package after a phone call in which they discussed “current problems” in the euro zone.
The EU-IMF rescue may be announced before financial markets open on Monday as negotiators are working towards unveiling the plan, possibly on Sunday.
Measures to repair the banking system are expected to be announced over the weekend, although it is unclear whether details would also be unveiled on how the fund would be used to assist the Government’s €15 billion economic recovery plan.
The negotiators are taking legal advice on the steps required to ensure all classes of bank bond investors assume a burden in the restructuring process. One of their prime concerns is to avert the threat of an immediate court challenge from any senior bondholder or a court objection at a later date.
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