The IMF are providing a separate loan to Ireland (at a lower interest rate) and would have needed ECB agreement to any haircut plan.  Whether the ECB would have agreed to that under any circumstances became moot once Geithner vetoed the IMF proposal.

The idea that Kelly carries any water whatsoever for the ECB is just plain ridiculous, given the only water he wants to give the ECB is ownership of the Irish banks in return for the 150 Billion the banks owe the ECB.

Some water carrying.

Index of Frank's Diaries