The Irish government is once again assuring senior bondholders of troubled banks that they won't lose investments in case of a failure. However, some bondholders are questioning whether the government will use taxpayer funds to rescue the banks, driving down the price of Anglo Irish Bank's senior guaranteed debt. "It's as if bondholders have diplomatic immunity from losses," said Neil Dwane, chief investment officer at Allianz Global Investors unit RCM. "Two years into this crisis, we've learned nothing and done nothing. Bondholders have got to understand that they can lose money when they invest in banks."

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