Falls back into recession
Irish financial crisis. Widespread speculation that senior bondholders of Irish banks will have to take a "haircut" -- i.e. share in the costs of an EU bailout -- leads to downgrades in the credit worthiness of the institutions that hads the most at stake in the ballooning property values of recent years.
Ireland's banks suffered a string of credit downgrades Friday—one reduced to junk-bond status —as speculation mounted that an EU-IMF bailout of Ireland could require senior bondholders to share the massive bill.