The Banking Inquiry's been told that guaranteeing all bank bondholders was a mistake.
Central Bank governor Patrick Honohan says the State shouldn't have agreed to pay all junior bondholders at the six major banks.
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Professor Honohan's giving evidence to the inquiry this morning, in its first hearing of the New Year.
He says regulators believed the banks would effectively regulate themselves – and the government should have pulled the plug on Anglo as soon as the crisis hit.
