The key public issue here seems to me to be how to retain or recreate a functioning banking system for personal and business banking whilst allowing bankrupt banks to go bankrupt - and thus wiping out their shareholders/bondholders.  The Irish taxpayer does not owe failed bankers/investors a duty to make good their losses, but s/he does require an ongoing functioning banking system and means of raising debt finance to fund the national debt.

Guaranteeing depositors is perhaps understandable to enable ongoing banking activities to continue.  Guaranteeing bondholders hard to justify seeing their returns reflected the risks inherent in the investment.  But why on earth guarantee shareholders of businesses gone bust?  Even shareholders/investors don't expect that - and can't believe their good fortune and finding a Government which seeks to appease them at all costs...

notes from no w here