Will SVR be dropped if PTSB is merged into another bank?

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mouse1

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Michael Noonan has today said the Government would have to make a decision on Permanent TSB - particularly on whether it should remain as a stand-alone bank or be merged with another institution - during this quarter.
Minister Noonan said the Government would still sell Irish Life, but only when the market was right.
He described the issues surrounding Irish Life & Permanent as the "last piece of the banking jigsaw". Could this be good news for us long suffering SVR PTSB customers?

http://www.rte.ie/news/2012/0119/bailout.html
 
Interesting comment by minister Noonan. I would have thought he knows by now what he is doing with the institution.
Irish Life and Permanent is being broken up so that the exchequer can realise some money from the (eventual) sale of the Life side but seeing as how the present CEO of PTSB (Dave Guinane) has been given his marching orders and is being replaced by a new CEO on Feb 20th I would find it extraordinary that a decision hasn't been made about its future.
Why would an external candidate take the job if the minister isn't going to make decision until the end of this quarter?

Likewise, where could PTSB go? AIB is the only option I could see but that would put a large stress on the IT side as they will have to merge EBS systems as well.
Can anyone see a realistic buyer for this bank, in this market?

In the immediate short term I can see it as stand alone but it is impossible to predict in the medium term.
 
From this mornings Indo


STATE-owned AIB has told the Department of Finance that it does not favour taking over Permanent TSB, which the Government is considering merging with another institution.
Sources last night confirmed that AIB had delivered the message over the weekend after Finance Minister [broken link removed] hinted last Thursday that Permanent TSB might not have a standalone future.
AIB, which has already taken over EBS, was described by sources close to the decision-making process as "an obvious candidate" to absorb its mortgage and savings business.
It is understood, however, that bosses at AIB have delivered a cool response to the prospect.
AIB is already undertaking a restructuring effort that will see more than 2,000 staff cut, while the EBS has not yet been fully integrated. This raises questions about AIB's capacity to complete another merger.
Harder
Taking on Permanent TSB could also make it harder for AIB to hit the Central Bank's loan-to-deposit targets.
AIB, and all the bailed-out banks, have to have a maximum of €122.50 on loan for every €100 on deposit by the end of 2013.
AIB's last reported 'loan-to-deposit ratio' was 143pc (or €143 on loan for every €100 deposit). Permanent TSB's was 227pc.
Permanent TSB would also come with the challenges of an inherently unprofitable tracker mortgage book.
A spokesman for the department declined to comment on any conversations with AIB, but said officials "continue to explore all options".
Other sources, however, suggested that efforts are concentrating on finding a "non-AIB solution". The most likely outcome is that Permanent TSB's tracker mortgages will be "warehoused" in a separate vehicle, leaving a small, healthy bank.
The Government will have to convince the European competition authorities that this new, smaller bank has a viable future.

www.independent.ie/business

 
Has anyone else heard anything about this story, as I feel that this is the greatest (and perhaps only) opportunity for PTSB SVR customers to receive an alternative product.
 
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