**EBS, IL&P cry foul on link-up with Nationwide **
Jon Ihle and Emmet Oliver
tribune.ie/business/article/ … ationwide/
Irish Life & Permanent (IL&P) and EBS are opposing any attempt to fold Irish Nationwide into the new structure of a “super mutual” as long as the lender has such large exposures to the property market.
The minister for finance, Brian Lenihan, is preparing to express his support for a ‘third pillar’ in banking or ‘super mutual’ during the budget speech on Tuesday, but the signing-off on a deal remains a long way off.
IL&P favours the setting up of a bad bank or asset management agency before agreeing to the super mutual structure, although the institution has declined to comment publicly in any way. IL&P and EBS are impressed by the Irish Nationwide deposit book, but are very wary of its property loan exposures, although EBS has problems in this area too.
“This deal can happen but only if the poison in Irish Nationwide is taken out; with the poison in there, the deal is not achievable,” said a source familiar with the discussions, who asked not to be named.
