Permanent TSB? More like Permanent inability.

Permanent Tsb are in the financial news again, this time its not for ripping off brokers though, its because their sub-prime mortgage wing ‘Springboard’ have had their funding pulled by Merrill Lynch. Springboard is a joint venture between PTsb and Merrill Lynch, the question now is ‘what does a mortgage company who can’t lend money do?’. I suspect they will be standing in line with the Woodworm who specialises in concrete only products.

The same thing happened several months back to another lender and they swiftly left the market. The concern now is for the IL&P share price, Dennis Casey will have some serious wangling on his hands to avoid disaster because he now has a war on several fronts, in fact, if I could raise Bismark from the dead and get a decent Prussian translator I would do it and let the original ‘Mr. Blood and Guts’ lay down some facts for the beleaguered CEO of Permanent Tsb.

Today’s news is about the fact that a major bank (Merrill Lynch) is pulling funding from Springboard, they are not pulling …

Read More

When an Irish CEO can’t give shareholders value.

I write today regarding the CEO of Irish Life & Permanent TSB, Dennis Casey. He is an articulate and educated individual and driven as well, he has led the company to profitablity for many years. However one of his latest moves is to reduce broker commissions in the coming year, this decision was met with a lot of hostility by the broker market. The basis for it is apparently because of huge losses in the subprime market in the USA, but are the out of state investment decisions of any bank really the concern of anybody other than the banks themselves? No, of course not, but the fallout is passed on it seems.

People might talk about broker greed but it pales in comparison to bank greed! The proposal means that brokers can potentially lose the money they earn as a commission if the loan is changed any time in the first five years, and the average loan is currently lasting about five years so brokers will never be able to remain liquid because they will never know if a …

Read More

When an Irish CEO can't give shareholders value.

I write today regarding the CEO of Irish Life & Permanent TSB, Dennis Casey. He is an articulate and educated individual and driven as well, he has led the company to profitablity for many years. However one of his latest moves is to reduce broker commissions in the coming year, this decision was met with a lot of hostility by the broker market. The basis for it is apparently because of huge losses in the subprime market in the USA, but are the out of state investment decisions of any bank really the concern of anybody other than the banks themselves? No, of course not, but the fallout is passed on it seems.

People might talk about broker greed but it pales in comparison to bank greed! The proposal means that brokers can potentially lose the money they earn as a commission if the loan is changed any time in the first five years, and the average loan is currently lasting about five years so brokers will never be able to remain liquid because they will never know if a …

Read More

Citigroup stock goes down further as COO Robert Druskin resigns.

Citigroup (I earlier mentioned how the Sovereign Wealth Fund of Abu Dhabi are bailing them out) lost another 46 cents on their share price as Robert Druskin the Chief Operations Officer resigned yesterday. The news comes as Vikram Pandit is announced as the new CEO.

Druskin was a close friend of Charles Prince (ex CEO of the group) who was tossed out earlier in the year because of the groups disastrous exposure to the sub-prime loan market.

I sincerely hope he’s not leaving with a golden handshake, I’m a firm believer that Exec’s who expose their shareholders should be treated the same way as a regular staff member who steals from the company. Making any decision that affects share price is what they get paid – damn well – to do, and failure to do it well should result in an equally dishonourable discharge.

The Americans are being disappointingly generous in the way disgraced exec’s are being treated: Enron and a few others being the exception. The market and the people need heads to roll, it’s the only way to …

Read More