Irish Life & Permanent - Denis 'the mouth' Casey

townes · June 18, 2008, 3:20pm

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…

Commenting on the housing market, he said the reduction in house prices and housing output in Ireland was a sign of a market working effectively. “As demand softens, prices should respond and supply should reduce. And this is exactly what is happening…it means that house prices have a real prospect of stabilising sooner rather than later*.” THE IRISH TIMES, 6 Feb 2008

Denis Casey told the Leinster Society of Chartered Accountants yesterday that the sharp fall in bank shares in recent months was a “huge over-reaction”. “Irish banks were treated savagely by equity markets during 2007. But in time the markets will again come to recognise the underlying resilience of both the Irish economy and of our financial institutions.” Mr Casey argued that the Irish economy was fundamentally sound with low public debt, taxes and unemployment, and was well positioned to deal with a more challenging environment. “It is more sophisticated and broader than at any time in our history.” THE IRISH TIMES, 7 Feb 2008

Denis Casey also said he expects the ECB to reduce interest rates this year [by 50 basis points] and Mr Casey believes that this move, coupled with a reduced supply of new houses should stem the fall in house prices. THE IRISH TIMES, 27 Feb 2008

*Mr Casey said property prices dropped by 7.2 per cent last year and would fall a further 4-5 per cent in the early part of this year. He said ECB rates would drop in the second half of the year and the property market would rally. “Demand has not gone away - it has been postponed.” IL&P said arrears on mortgage amounted to 0.11 per cent of all loans and defaults had improved since December. Mr Casey said there was nothing to suggest customers were under any payment stress on personal or car loans, where signs of debt distress would appear first. *THE IRISH TIMES, 28 Feb 2008

Denis Casey said property prices fell 7.2 per cent last year and would decline by a further 4-5 per cent in 2008. THE IRISH TIMES, 13 March 2008

*Irish Life & Permanent (IL&P) said that it had drawn €5.3 billion from the ECB by the end of the year but had since reduced this figure to €4.6 million. The group said it could have drawn up to €17 billion from the ECB at the end of 2007, but had only accessed just over a third of this. One London analyst expressed concern last month that IL&P was “using the ECB as an alternative funding source rather than a lender of last resort”. IL&P chief executive Denis Casey described the concern as “a typically UK view of the world” reflecting the different stances of Bank of England and the ECB. *THE IRISH TIMES, 15 March 2008

*Denis Casey said that the IL&P business model would “allow us weather the current turmoil and to take full advantage of the further opportunities that lie ahead”. * THE IRISH TIMES, 2 April 2008

*Denis Casey said that arrears cases in its Irish residential mortgage book had been “reducing steadily over the past five years” and that there were “no signs of stress evident in any other part of our portfolio”. * THE IRISH TIMES, 2 April 2008

jake76 · June 18, 2008, 3:23pm

Do IL&P have a trading statement due tomorrow?

plaudit · June 18, 2008, 3:29pm

Great stuff townes, the more of these morons that are exposed as complete clowns the better.

verbatim · June 18, 2008, 3:35pm

Yes they do.

Pill · June 18, 2008, 4:36pm

How much does Mr Casey get paid, not enough I’d say.

townes · June 18, 2008, 8:01pm

He received only EUR 1,362,000 last year .
Works out at a derisory EUR 5,200 per working day.

daveirl · June 18, 2008, 9:28pm

Bitter are we?

townes · June 18, 2008, 11:31pm

Not at all. You maybe know that Brian Goggin (BoI) earned EUR 3,000,000 this year - and EUR 4,000,000 last year.

CelloPoint · June 18, 2008, 11:45pm

townes:

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…

Commenting on the housing market, he said the reduction in house prices and housing output in Ireland was a sign of a market working effectively. "As demand softens, prices should respond and supply should reduce. And this is exactly what is happening…it means that house prices have a real prospect of stabilising sooner rather than later*

." THE IRISH TIMES, 6 Feb 2008

Denis Casey told the Leinster Society of Chartered Accountants yesterday that the sharp fall in bank shares in recent months was a “huge over-reaction”. “Irish banks were treated savagely by equity markets during 2007. But in time the markets will again come to recognise the underlying resilience of both the Irish economy and of our financial institutions.” Mr Casey argued that the Irish economy was fundamentally sound with low public debt, taxes and unemployment, and was well positioned to deal with a more challenging environment. “It is more sophisticated and broader than at any time in our history.” THE IRISH TIMES, 7 Feb 2008

Denis Casey also said he expects the ECB to reduce interest rates this year [by 50 basis points] and Mr Casey believes that this move, coupled with a reduced supply of new houses should stem the fall in house prices. THE IRISH TIMES, 27 Feb 2008

*Mr Casey said property prices dropped by 7.2 per cent last year and would fall a further 4-5 per cent in the early part of this year. He said ECB rates would drop in the second half of the year and the property market would rally. “Demand has not gone away - it has been postponed.” IL&P said arrears on mortgage amounted to 0.11 per cent of all loans and defaults had improved since December. Mr Casey said there was nothing to suggest customers were under any payment stress on personal or car loans, where signs of debt distress would appear first. *THE IRISH TIMES, 28 Feb 2008

Denis Casey said property prices fell 7.2 per cent last year and would decline by a further 4-5 per cent in 2008. THE IRISH TIMES, 13 March 2008

*Irish Life & Permanent (IL&P) said that it had drawn €5.3 billion from the ECB by the end of the year but had since reduced this figure to €4.6 million. The group said it could have drawn up to €17 billion from the ECB at the end of 2007, but had only accessed just over a third of this. One London analyst expressed concern last month that IL&P was “using the ECB as an alternative funding source rather than a lender of last resort”. IL&P chief executive Denis Casey described the concern as “a typically UK view of the world” reflecting the different stances of Bank of England and the ECB. *THE IRISH TIMES, 15 March 2008

*Denis Casey said that the IL&P business model would “allow us weather the current turmoil and to take full advantage of the further opportunities that lie ahead”. * THE IRISH TIMES, 2 April 2008

*Denis Casey said that arrears cases in its Irish residential mortgage book had been “reducing steadily over the past five years” and that there were “no signs of stress evident in any other part of our portfolio”. * THE IRISH TIMES, 2 April 2008

Looks like somebody’s gonna be up late tonight re-arranging their powerpoints.

Serves these guys right – issuing press-releases masquerading as fact is bound to get you in trouble eventually.

Eat your words!

2Pack · June 19, 2008, 1:50pm

Denis left the trading statement to a minion

20% down

rte.ie/business/2008/0619/ilp.html

daltonr · June 19, 2008, 4:05pm

Up almost 5%.

Is this a sign of anything?

Has so much bad news been priced in that when the bad news comes out it can’t live down to expectations and turns out to be good news?

Or is Mr Market just off his meds again? Down 5% again tomorrow?

-Rd

CelloPoint · June 19, 2008, 4:39pm

Bear in mind that the company who is the guardian of most pension money in Ireland was also down a similar amount today.

Great if you like volatile pensions!

CaveCanem · June 19, 2008, 11:57pm

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.

CaveCanem · June 20, 2008, 11:41am

At least arrears are low (I’ll have to find out what their definition is )

Mark · June 20, 2008, 12:09pm

CaveCanem:

Davy daily comment

On another dark day for financials, IPM’s 5% rebound yesterday (June 19th) owed much to news that it will have a substantial portion of its €3bn long-term debt rollover (due Q3) completed by the end of June, with the balance planned for the summer months. On the conference call, management clarified that the term will range from 13 months to three years, and it expects to pay a spread of 100-110bps over three-month euribor.

**Goodbody daily comment **

The rising cost of debt/deposit funding means loan spreads need to go up more (guiding +25/50bps), so affordability and demand is likely to dampen further and new business trends in the mortgage business will be weaker in H2.

At least arrears are low (I’ll have to find out what their definition is )

Thats a good point, in the US some companies are keeping their reported ‘non-peforming’ loans low by redefining non-performance. E.g. Moving from 1 missed payment, to 2 or 3 missed payments etc.

spqr64 · June 20, 2008, 12:44pm

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.

townes · June 21, 2008, 1:10am

Must agree.

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!

townes · July 7, 2008, 4:39pm

townes:

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…

Commenting on the housing market, he said the reduction in house prices and housing output in Ireland was a sign of a market working effectively. "As demand softens, prices should respond and supply should reduce. And this is exactly what is happening…it means that house prices have a real prospect of stabilising sooner rather than later*

." THE IRISH TIMES, 6 Feb 2008

Denis Casey told the Leinster Society of Chartered Accountants yesterday that the sharp fall in bank shares in recent months was a “huge over-reaction”. “Irish banks were treated savagely by equity markets during 2007. But in time the markets will again come to recognise the underlying resilience of both the Irish economy and of our financial institutions.” Mr Casey argued that the Irish economy was fundamentally sound with low public debt, taxes and unemployment, and was well positioned to deal with a more challenging environment. “It is more sophisticated and broader than at any time in our history.” THE IRISH TIMES, 7 Feb 2008

Denis Casey also said he expects the ECB to reduce interest rates this year [by 50 basis points] and Mr Casey believes that this move, coupled with a reduced supply of new houses should stem the fall in house prices. THE IRISH TIMES, 27 Feb 2008

*Mr Casey said property prices dropped by 7.2 per cent last year and would fall a further 4-5 per cent in the early part of this year. He said ECB rates would drop in the second half of the year and the property market would rally. “Demand has not gone away - it has been postponed.” IL&P said arrears on mortgage amounted to 0.11 per cent of all loans and defaults had improved since December. Mr Casey said there was nothing to suggest customers were under any payment stress on personal or car loans, where signs of debt distress would appear first. *THE IRISH TIMES, 28 Feb 2008

Denis Casey said property prices fell 7.2 per cent last year and would decline by a further 4-5 per cent in 2008. THE IRISH TIMES, 13 March 2008

*Irish Life & Permanent (IL&P) said that it had drawn €5.3 billion from the ECB by the end of the year but had since reduced this figure to €4.6 million. The group said it could have drawn up to €17 billion from the ECB at the end of 2007, but had only accessed just over a third of this. One London analyst expressed concern last month that IL&P was “using the ECB as an alternative funding source rather than a lender of last resort”. IL&P chief executive Denis Casey described the concern as “a typically UK view of the world” reflecting the different stances of Bank of England and the ECB. *THE IRISH TIMES, 15 March 2008

*Denis Casey said that the IL&P business model would “allow us weather the current turmoil and to take full advantage of the further opportunities that lie ahead”. * THE IRISH TIMES, 2 April 2008

*Denis Casey said that arrears cases in its Irish residential mortgage book had been “reducing steadily over the past five years” and that there were “no signs of stress evident in any other part of our portfolio”. * THE IRISH TIMES, 2 April 2008

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.

CelloPoint · July 7, 2008, 4:48pm

townes:

townes:

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…

Commenting on the housing market, he said the reduction in house prices and housing output in Ireland was a sign of a market working effectively. "As demand softens, prices should respond and supply should reduce. And this is exactly what is happening…it means that house prices have a real prospect of stabilising sooner rather than later*

." THE IRISH TIMES, 6 Feb 2008

Denis Casey told the Leinster Society of Chartered Accountants yesterday that the sharp fall in bank shares in recent months was a “huge over-reaction”. “Irish banks were treated savagely by equity markets during 2007. But in time the markets will again come to recognise the underlying resilience of both the Irish economy and of our financial institutions.” Mr Casey argued that the Irish economy was fundamentally sound with low public debt, taxes and unemployment, and was well positioned to deal with a more challenging environment. “It is more sophisticated and broader than at any time in our history.” THE IRISH TIMES, 7 Feb 2008

Denis Casey also said he expects the ECB to reduce interest rates this year [by 50 basis points] and Mr Casey believes that this move, coupled with a reduced supply of new houses should stem the fall in house prices. THE IRISH TIMES, 27 Feb 2008

*Mr Casey said property prices dropped by 7.2 per cent last year and would fall a further 4-5 per cent in the early part of this year. He said ECB rates would drop in the second half of the year and the property market would rally. “Demand has not gone away - it has been postponed.” IL&P said arrears on mortgage amounted to 0.11 per cent of all loans and defaults had improved since December. Mr Casey said there was nothing to suggest customers were under any payment stress on personal or car loans, where signs of debt distress would appear first. *THE IRISH TIMES, 28 Feb 2008

Denis Casey said property prices fell 7.2 per cent last year and would decline by a further 4-5 per cent in 2008. THE IRISH TIMES, 13 March 2008

*Irish Life & Permanent (IL&P) said that it had drawn €5.3 billion from the ECB by the end of the year but had since reduced this figure to €4.6 million. The group said it could have drawn up to €17 billion from the ECB at the end of 2007, but had only accessed just over a third of this. One London analyst expressed concern last month that IL&P was “using the ECB as an alternative funding source rather than a lender of last resort”. IL&P chief executive Denis Casey described the concern as “a typically UK view of the world” reflecting the different stances of Bank of England and the ECB. *THE IRISH TIMES, 15 March 2008

*Denis Casey said that the IL&P business model would “allow us weather the current turmoil and to take full advantage of the further opportunities that lie ahead”. * THE IRISH TIMES, 2 April 2008

*Denis Casey said that arrears cases in its Irish residential mortgage book had been “reducing steadily over the past five years” and that there were “no signs of stress evident in any other part of our portfolio”. * THE IRISH TIMES, 2 April 2008

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.

I couldn’t give a shit about the banking system at this stage. It’s the pension money that they’re guardians over that I worry about.

Ordinary people who’ve worked all their lives are being put at massive, massive risk because of the action/inaction of a few.

CaveCanem · July 7, 2008, 5:50pm

Does anyone know if IL&P was able to roll this over? If not, the downgrades will make it harder and more expensive to place. Maybe its getting a makeover for ecb vaults.