Anglo Irish Bank: How Safe Are Unsecured Creditors?

The global financial structure is so unstable right now, it is impossible to determine in advance what might cause global panic or when. There are many breakpoints both here in the U.S. and around the globe. Here's Roubini Global Economics reporting on the likely fate of creditors at Anglo Irish Bank:

Irish Finance Minister Brian Lenihan has announced that the extension of the government’s bank liability guarantee—now set to expire in December—will only cover deposits, not subordinated debt. In the case of Anglo Irish Bank, the amount of subordinated debt outstanding is €1.7 billion, which is trading at a large discount.