Old media failure in Ireland as €1.5bn is paid by the State to bondholders in a single day

In fairness to the Irish Independent, there was a reference to the payment of €1.5bn to AIB bondholders today, appended to a news report which focussed on the NTMA selling bonds to pension funds; the Irish Independent wrote “Meanwhile, nationalised AIB will pay back €1.5bn in senior, unsecured bonds later today, in the latest controversial payment to bondholders in a bailed-out bank. The debt was not covered by a specific government guarantee, though it benefited from the Government’s decision not to “burn” senior bondholders in the State-controlled banks. Last night, the bonds were trading at face value; they have seen a sustained rise in prices as the repayment date approached. (Additional reporting Bloomberg)”

And that was it in Ireland’s old media.

RTE even managed to display its ignorance when it reported in the late afternoon, the occupation of the AIB building in Dublin’s IFSC district by protesters and said “They [the protesters] were objecting to what they claim was a payment of €1.5bn to unsecured AIB  bondholders.”

“What they claim”? WHAT THEY CLAIM? Would it have been beyond RTE to check that an unsecured, unguaranteed bond, ISIN number XS0294958318, totalling €1.5bn was being paid today by AIB, a bank 99.8% owned by the State which, together with EBS which it took over last year, has cost this State €20.7bn? Apparently it was beyond RTE to verify this, and so we get the “what they claim” terminology.

Elsewhere the Irish Times ignored the payment. As did the Irish Examiner and its sister, the Business Post.

Thankfully Ireland no longer relies on old media for news. The Journal reported it, Broadsheet reported it, WorldIrish reported it – with video from the occupation of AIB – and it was reported on here. And it has its own discussion thread on politics.ie and thepropertypin.com. Deputy Stephen Donnelly and Senator David Cullinane issued statements online. And there was a protest this evening outside the AIB in Charleville organised by the Ballyhea/Charleville communities.

Now it might be said that Ireland has already tried and failed to win its argument with the ECB and others, which would allow this payment to have been suspended or discounted; it might be said that AIB is a commercial company, though at 99.8% state-ownership, there is practically no difference between AIB and the State; it might be said that the €20.7bn in cash given by the State to AIB/EBS is water under the bridge and indeed, we might get some of it back. But to see one half of this year’s Budget 2012 adjustment fly out the door in 24 hours without a pipsqueak from most of Ireland’s old media, must surely undermine the credibility of what have been respected news organisations.

Or as RTE might say “what have been claimed to be respected news organisations”.