German PM Merkel has given the go-ahead to hammer bondholders.
Presuming there is sufficient proof to indicate that Anglo lied during the blanket guarantee negotiations, the Irish Government are legally entitled to revoke the guarantee and let the bondholders (even German bondholders) take the hit, explaining to markets they were forced to do so by the markets.
It would vindicate Merkel. It would effectively be a sneaky kind of bailout from the Germans, readily explainable to the German taxpayer and would put manners on the banks.
With Anglo out of the way, things in Ireland would look at whole lot more manageable.
(I know little about economics and I’m sure there’s something not possible about this scenario- maybe someone here can point it out).