Advice sought on E.B.S. sale and funds invested.

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gussy

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Just a query on what the ebs is going to be like after it is sold. A two horse race between Cardinal/wilbur ross and irish life and permanent. Cardinal say it will refloat it in time to come possibly a long time. I have 30k in it now what would be the best advise as you see it. Thanks
 
I would think that your deposit is safer in a foreign owned private EBS under Cardinal Capital.

What type of deposit account is your 30,000 EUR in?
 
two different accounts one was a two year account and 1 was a five year account both are finished at the end of march. So I was wondering if I re-invested the money in the hope of shares in what is expected to be the third biggest bank in ireland. I know the other two banks are reducing in size but still what all the smoke has cleared it may be a good option. Would you agree?
 
No, you will not get an share windfall from EBS deposits.

EBS are 100% state owned at the moment.

Depositor's are no longer shareholders.
 
Hi Ciaran T. I know the bank is 100% state owned. The sucessful buyers will buy it from the state and then run it privately. I except what you are saying in the short term the state does own it. If you were to look beyond the states ownership what are the successful bidders likely to do with the ebs. Thanks for you views
 
gussy said:
Hi Ciaran T. I know the bank is 100% state owned. The sucessful buyers will buy it from the state and then run it privately. I except what you are saying in the short term the state does own it. If you were to look beyond the states ownership what are the successful bidders likely to do with the ebs. Thanks for you views
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From my understanding of the situation if Cardinal/Wilbur Ross acquire EBS then they will make cuts to try and bring the former Building Society back to profitability as soon as possible with a view to selling it and turning a profit.
They would also be gambling that they would get it at a knock down price and that, in time it will prove a bargain once the Irish economy picks up and again, sell it on or float it with the view to turning a profit.

If Irish Life & Permanent acquire it they would merge it with permanenttsb in the hope of it becoming a “third force” in Irish banking. As I understand it they would raise the money by way of a rights issue but would require further government financial support and IL&P would own 60% of the merged entity and the taxpayer owning 40% (these percentages are just guesses by me).

As the present government have not made a decision due to it having lots of other problems at the minute the final decision will not be made before an election. With a new government of FG & Lab I would think the appetite for putting more money into financial organisations will be non existent so if I was a gambling man I would say the Wilbur Ross vehicle will be the winning bidder.

Regardless of any scenario there will be no pay out for any EBS members.
 
Should AIB be allowed to still use the brand EBS - surely it is still not a Building Society in the legal sense?
 
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