On 6 February 2008, when the IL&P share price was at 10.70, Denis ‘the mouth’ Casey castigated the market, saying the drop was a “huge over-reaction”. Today, at 8.73, it is close on 20% lower than that Feb 2008 price.
A good time to review (courtesy of The Irish Times) the various stupid comments made by the same Mr Casey over recent months.
After reading these, you will wonder (a) why has IL&P got this guy as CEO and (b) why doesn’t he just shut his mouth…
I noticed they said arrears are broadly in line with the lows of last year. I’d assumed that bad lending practices until recently could be masked by distressed borrowers selling up at a profit. This should not be possible for the last few years of origination. B&b in the uk reported higher arrears on btl. Up to a half of loans in ireland in the last two years were to investors. ICRs are higher in the uk. Unemployment is rising - many ftbs need two incomes to service their mortgages. Interest rates have increased. Cost of living is up. Quite a remarkable performance.
Speaking of which I wouldnt for the life of me put my pension with them. If they were the only game in town Id put it in a biscuit tin, they are inept and as shown on Primetime about the elderly the level of knowledge in the Permo salespeople is lacking to put it mildly and they are supposed to be more knowledgeable than the sales staff in ILAC. I would make a guess that after that a memo went around to all the regional managers telling them to get their staff to learn the products (the ones with the crystal mark for clarity) too little too late.
I have had more approaches from people asking for advice after having been thoroughly confused by them than you could shake a stick at.
The history here gives a clue…
Irish Life and the Permo merged in 1999. Two years later, in 2001, Irish Life/Permo acquired the TSB. So, we now have a group comprising on the banking side of two mediocre “banks” - one a plain vanilla mortgage lender, the other a government savings bank - both with no real experience in the modern banking world where understanding of risk is paramount. Added to this, is the joker Denis Casey running the entire show. His recent comment that IL&P can continue to fund its activities via the ECB ‘lender of last resort’ funding rather than via organic growth of customer deposits (which are falling) is beyond belief!
In the light of today’s downgrade of IL&P by Moody’s to NEGATIVE, it is worthwhile to review once again the newspaper comments made by Denis Casey a few short months ago. Surely now it is time for him to resign - and the travel agent Chairwoman should go with him.
If this does not happen immediately, the Financial Regulator should insist they both go soonest - before they bring down the entire Irish Banking system.