It is interesting in this crisis how public perception has been shaped towards the banks. Sean Fitzpatrick, former chairman at Anglo (recipient of €29bn bailout) is cast as a pantomime villain whilst Eugene Sheehy, the former CEO of AIB (recipient of €20bn bailout) has escaped relatively scot-free. Similarly Michael Fingleton at Irish Nationwide (recipient of €5bn bailout) is constantly prodded in the media but you never hear a dickey bird about Denis Casey at Irish Life and Permanent (recipient of €4bn bailout). In fact, these were the 12 CEOs and chairpersons at the six state-guaranteed banks in September 2008 – Eugene Sheehy, David Drumm, Brian Goggins, Fergus Murphy, Michael Fingleton, Denis Casey, Dermot Gleeson, Sean Fitzpatrick, Richard Burrows, Mark Moran, Michael Walsh and Gillian Bowler. How many would you recognize? You can check your answers below!
Permanent TSB has received a €4bn bailout from us, and although that bank rejects the suggestion it will need additional funds from us, it is also a fact that it is pushing out the date by which it expects to be profitable again – in August 2011, it told the European Commission it would be returning to profit in 2014, a year later in August 2012, it was reported to have said it would return to profit “at the end of 2014 or start of 2015” and last week, it said it would return to profit in 2016; the pattern of ever-deepening bad news from PTSB is clear. We may get some of that money back because as part of the bailout, we have taken full control of Irish Life and that might be worth over €1bn if we ever sell it.
Tomorrow though, PTSB is repaying €1.3bn to bondholders. Unlike Anglo which is a designated zombie, it seems that PTSB has become a designated “pillar bank”, though it was not announced as such in March 2011 when the other two pillar banks, AIB and Bank of Ireland, were announced. And the bond being repaid tomorrow is one that was guaranteed by the Government when it was issued in January 2010, unlike many of the unguaranteed bonds repaid so far. However, this bond is NOT sovereign debt and is being paid from a bank that is 99.2% owned by us, which has an uncertain future and which has to date cost us €4bn.
The bond payment tomorrow should not go unnoticed.
When: Tomorrow, 14th January, 2013
What: Government guaranteed bond at Permanent TSB originally issued on 14th January 2010
Where: A bit of a vague answer but a payment will be made by PTSB to bond clearing companies who will then divvy the payment out to the bondholders. PTSB’s headquarters are at 56-59 St Stephen’s Green, Dublin.
How much: USD 1.75bn, that’s €1.311bn at the current exchange rate of EUR 1=USD1.3343
Why: Because the previous government guaranteed the bonds when they were issued in January 2010. But even if they had not been guaranteed, it is the policy of this government to repay senior bonds 100% unless the ECB changes its position and allows partial or full default, something that appears unlikely.
You will find details of all bonds payable in Irish banks at the Bondwatch website which is operated by Diarmuid O’Flynn who is active with the Ballyhea and Charleville bank bailout protests.
And as for recognizing the chairpersons and CEOs of the banks in September 2008, how did you do. This is the gallery.