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 Post subject: Government take 99% stake in PTSB
PostPosted: Tue Jul 26, 2011 7:23 pm 
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RTE news report the Government has been granted a High Court order for the recapitalisation of Irish Life & Permanent, effectively nationalising the group with an injection of €2.7 billion of state funds.

Shareholders in IL&P last week voted against Government plans to take a stake of more than 99% in the group. This meant the Government had to go to the High Court to recapitalise the group by the end of this month as agreed under an EU-IMF bail-out.

'It was clear that IL&P was not in a position to raise sufficient capital itself, and therefore ILP is reliant upon the State to provide the necessary capital in order to comply with the Central Bank requirements,' Finance Minister Michael Noonan said.

He said there was 'considerable shareholder confusion' about the problems with IL&P's business, including a 'lack of appreciation' of how over-reliant it was on emergency funding from the ECB and the Central Bank.

He added that the Government had not been approached with credible proposals from any potential investors in IL&P and had not received any concrete proposals. Mr Noonan added that the State had not been introduced to 'the unnamed potential investors which certain shareholders have stated are willing to invest in IL&P'.

The Minister said the Government remained open to engage with parties interested in investing in the group, but this week's deadline meant it had no option but to go to court today.

In a statement, IL&P said its board believed the capital increase by July 31 was critical for the group's continuing banking activities. It will now be seeking to cancel the listing of its shares on Dublin's main market and applying for a listing on the junior ESM market.

Today's order also direct's IL&P not to go ahead with resolutions passed at last week's EGM relating to the appointment of new financial and legal advisors and a request to extend the July 31 deadline.


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Tue Jul 26, 2011 8:06 pm 
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Just wondering if their is any chance that their very high fixed and variable rate mortgages will fall in line with other state owned banks such as AIB? This bank needs pulled in as it's latest variable rate is going to be 6.05% from 22nd August 2011, this must be higher than any bank in Western Europe


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Tue Jul 26, 2011 10:43 pm 
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Sorry Mouse, not much chance of that. The government will just see it as an indirect tax and the ILP middle class will get squeezed, it's easier than raising taxes.


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Tue Jul 26, 2011 10:58 pm 
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Nothing more than a rat infested shell.

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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Aug 29, 2011 9:24 pm 
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I am reliably informed that the NTMA/DoF are currently planning as per the below:

PTSB will not be fully merged with AIB or BoI (contrary to multiple media reports). One of the reasons being that neither AIB nor BoI can handle a jump in their loans to deposits ratios that this would cause.
PTSB will transfer their mortgages to a wind-down facility, likely to be transferred to IBRC.
PTSB deposits will be transferred via a 'deposit auction'. AIB are seen as the more likely to succeed in the auction.
All PTSB branches will be closed with large scale job losses. In the short-term, some staff will be retained to deal with the transfer of loans to IBRC and deposit transfers to the winner of the auction.

'Speculation', if you like, but from someone in the know.


Last edited by fungus on Mon Aug 29, 2011 9:30 pm, edited 1 time in total.

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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Aug 29, 2011 9:27 pm 
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fungus wrote:
I am reliably informed that the NTMA/DoF are currently planning as per the below:

PTSB will not be fully merged with AIB or BoI (contrary to multiple media reports). One of the reasons being that neither AIB nor BoI can handle a jump in their loans to deposits ratios that this would cause.
PTSB will transfer their mortgages to a wind-down facility, likely to be transferred to IBRC.
PTSB deposits will be transferred via a 'deposit auction'. AIB are seen as the more likely to succeed in the auction.
All PTSB branches will be closed with large scale job losses. In the short-term, some staff will be retained to deal with the transfer of loans to IBRC and deposit transfers to the winner of the auction.

Crumbs. Bring back the uncertainty...

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"It is impossible to design a system so perfect that no one needs to be good."

So long and thanks for all the fish.


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Aug 29, 2011 11:02 pm 
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fungus wrote:
All PTSB branches will be closed with large scale job losses. In the short-term, some staff will be retained to deal with the transfer of loans to IBRC and deposit transfers to the winner of the auction.




So Anglo staff get kept on in greater numbers than PTSB staff because Anglo fucked up bigger?


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Tue Aug 30, 2011 10:47 am 
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Quote:
Irish Life & Permanent's retail banking arm, Permanent TSB, is to buy Northern Rock's Dublin-based savings branch, it was confirmed today


http://www.irishtimes.com/newspaper/breaking/2011/0830/breaking15.html

I'm not sure how this fits into the scenario outlined above


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Wed Aug 31, 2011 8:30 pm 
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http://www.bloomberg.com/news/2011-08-3 ... -rise.html
Quote:
Irish Life’s Bank Loan Losses Surge as Mortgage Arrears Rise
Aug 31, 2011
By Joe Brennan

Irish Life & Permanent Plc said loan losses at its banking unit more than doubled in the first half as mortgage arrears increased and house prices plunged.

Irish Life’s cases of Irish mortgage customers at least 90 days behind in payments increased to 8.8 percent at the end of June from 6.8 percent from six months earlier, the Dublin-based company said in a statement today. The loan loss at the company’s banking unit rose to 333 million euros ($481 million) from 150 million in the year earlier period.

Irish Life last month became the fifth government- guaranteed financial group to succumb to state control after Finance Minister Michael Noonan injected 2.7 billion euros into it to shore up the unprofitable banking division, Permanent TSB. Noonan is selling the life assurance and fund management division to limit costs to the state of rescuing the group.

.....(cont'd)


RTE report on it:

http://www.rte.ie/podcasts/2011/pc/pod- ... 621288.mp3 - MP3


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Wed Aug 31, 2011 11:36 pm 
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From the bloomberg article linked above:

"Noonan is selling the life assurance and fund management division to limit costs to the state of rescuing the group.

“We are progressing discussions with a number of interested parties and are encouraged by the progress so far,” said Kevin Murphy, chief executive officer, in the statement.

JC Flowers & Co. has teamed up with Apollo Global Management LLC, both private equity firms, to make a joint bid for the unit, said three people familiar with the discussions on Aug. 19. London-based CVC Capital Partners Ltd., Great-West Lifeco Inc.’s Canada Life Ireland as well as U.S. insurers Unum Group and Delphi Financial Group Inc. are among the other bidders, the people said. Final offers are due in October, they said.

Operating profit in the life assurance unit fell to 64 million euros for the first six months from 118 million euros for the same period last year. The company still expects the division’s full-year performance to be “broadly in line” with 2010, it said."

Translation - they are going to let Leon Black and Christopher Flowers bid for the largest pension fund manager in the State. That is worrying (if you have a pension with them).


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Sep 05, 2011 9:39 am 
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Can PTSB stand on its own? - Jon Ihle -> http://www.sbpost.ie/themarket/can-ptsb ... 58398.html

Quote:
Irish Life & Permanent management says Permanent TSB will be viable in 2014, but important indicators are pointing in the other direction

Ireland’s continuing financial crisis threw up yet another dramatic irony last week when Irish Life & Permanent (IL&P) announced it was acquiring the retail deposit book of Northern Rock’s Irish branch to help shore up the funding position of its banking subsidiary, Permanent TSB (PTSB).

The deal will bring €650 million of fresh deposits into the bank and will help deflate its still-ballooning loan-to-deposit ratio by about ten percentage points. With the acquisition of Irish Nationwide’s deposit book last February, PTSB has cut this critical measure from 249 per cent last December to an estimated 218 per cent today - nearly twice the 122.5 per cent level it must reach by 2014.

But last week’s transfer was like a blood transfusion from a cadaver to a patient on life support, as IL&P’s interim results revealed last Wednesday.

there is more


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Sep 05, 2011 10:40 am 
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IL&P delisted from the ISEQ?

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So long and thanks for all the fish.


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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Sep 05, 2011 10:48 am 
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yoganmahew wrote:
IL&P delisted from the ISEQ?


Appears so -> http://www.stockmarketwire.com/article/ ... isted.html


May follow on from this

ISDA rules Irish Life has had credit event -> http://www.reuters.com/article/2011/08/ ... 7520110826

Quote:
The bancassurer, effectively nationalised last month following a 2.7 billion euro ($3.9 billion) state capital injection, announced the results of a tender offer regarding some of its junior debt on Aug. 24.

A credit event is financial industry jargon for default on payment, breach of bond covenants or other event that casts doubt on an issuer's ability to service its debt.

The derivatives industry body has the final say on whether a credit event has occurred, a ruling that can trigger the payout of CDS -- a popular financial tool used to hedge risk and speculate on changes in the likelihood of default. ($1 = 0.697 euro) (Reporting by Padraic Halpin; Editing by Dan Lalor)



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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Sep 05, 2011 11:32 am 
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Is it being moved to the ESM or something?

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 Post subject: Re: Uncertainty at Irish Life and Permanent
PostPosted: Mon Sep 05, 2011 11:40 am 
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NOTICE OF CANCELLATION OF LISTING FROM THE OFFICIAL LIST -> http://www.irishlifeandpermanent.net/ip ... id=4487057

Enterprise Securities Market Notice -> http://www.irishlifeandpermanent.net/ip ... id=4486560

more: -> http://www.irishlifeandpermanent.net/ip ... ounce/rns/


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