Horror loss at EBS may force sudden buyout

Sunday Indo

Great. Looks like there’s no more family silverware left to feed the Directors’ insatiable addiction to obscene pay packets and bad management.

Prosecute, prosecute, prosecute.

Genius. When a board room’s back is to the wall, it’s funny some of the stuff they come up with.

Was this the result of some “brain-storming” session with chief gimp at the top of the room writing on a flip chart with lots of colourdey markers?

“Something must be done! Anything!”

It’s amazing that these guys believe they can get themselves off the hook by using company money to hire expensive PR companies to manage the perception from the fall-out. Meanwhile staff a couple of floors below are expected to print on both sides and bring in their own biros. The obscenity is off the scale.

EBS was my one and only halfarsed attempt at carpetbagging. Oh well.

I think it’s a little quick for ebs to flop. I’m not saying it won’t happen, it just seems a little too early in the downturn given they’re mostly residential. To me, it looks like Ross got a copy of a “what-if” presentation. Though I guess it’s possible that non residential could get them.

There are a number of steps the management would need to take before hitting the flop button. Stop lending and shrink the loan book. Cut costs on assumption that business will be in a run-off mode for 3/4yrs (until loans are in line with deposits). Ask the gov politely to extend some sort of facility to enable cheap funding post guarantee.

A friend who used to work in EBS told me of their corporate entertainment. Lap dancing clubs, pricey restaurants and tickets to all the major sporting events were order of the day in entertaining clients.

In our predictions thread a poster here predicted that both Irish building societies would fall into difficulty that year. I think it’s time for that person to take a bow.

Don’t they still have their corporate booth at Croke Park?

Amazing that such a small operation with less than mediocre performance can afford it alongside the corporate giants.

EBS has so many members, any potential mutualisation would only yield a fairly small three-figure sum.

The tenor of Ross’s article suggests to me that there’s something more going on here than just losses on loans. Is it possible that the EBS have their very own rogue trader or suchlike? I don’t know much about how they are run or what activities they engage in.

Shane Ross has been waging war on EBS for years now. I don’t think there is anything as sinister as rogue trading going on there, just incompetence, back-scratching and ineptitude.

I’m sure Shane Ross knows exactly what’s going on in EBS. He just can’t print it.

One big commercial loan gone wrong could do serious damage to EBS’s balance sheet.

Isn’t EBS the institution where it was alleged that the director ‘personally’ approved loans that the officials responsible didn’t think should be approved ?

I wonder if someone rather senior approved some really dodgy loans ?

In the last years of the boom very little if any checking was done on the mortgages handed out, the loan officer was just ordered to write the cheque.

Nope, you are thinking of Fingleton in INBS

I know of one particular developer who bought land in a regional town about 18 months ago when land was at its peak and even paid over the odds back then. I also know from a friend inside EBS that the credit committee did not want to finance it but it was pushed through by an auctioneer with very close ties to EBS who lobbied the top brass to get it pushed through.
I do NOT know however if the auctioneer represented the vendor of the land, but he definitely did the valuation on which basis the bank gave the finance.
The land in question is worth about half what was paid I believe about 15 - 20 million.
And I hear the whole deal has now caused a lot of rows within the bank.

As if that only goes on at EBS :unamused: They’re really cream crackered because securitisation was central to their funding. It’s the northern rock model. It’s fooked.

I’ve got three grand in there.

Just now on Morning Ireland, some dude from EBS (who’s only been in the job 9 months) put out some fresh demutualisation rhetoric.

Admitted they’re currently loss-making and said they’ve been around for 73 years and will be around for the next 73 years.

This guy is as naive as they come and has found himself sipping from the poisened chalice.