So can Mr Masding fashion a profitable business from the Permanent TSB wreckage?
The omens are not good. As it struggled desperately to stay afloat in recent years, Permanent TSB ruthlessly squeezed its variable rate borrowers. Its standard variable rate is now a vertiginous 5.3pc, by far the highest rate charged by any Irish lender. At the moment, most of these unfortunate home owners are effectively trapped but it's hard to see many of them staying with Permanent TSB once alternative sources of mortgage credit become available. Far more likely is that, once conditions do improve, there will be a steady haemorrhage of existing customers.
So can Mr Masding persuade the [broken link removed] and the troika that Permanent TSB has a viable future?
He has already commissioned Bain Consultants to conduct a root and branch review of the bank's operations. Can Permanent TSB be restored to a position where it can fund itself and start lending once again? The big advantage of appointing an outsider such as Mr Masding is that he comes to the job without any loyalties and is thus open to all possibilities, including recommending that it be shut down. Working in Permanent TSB's favour will be the Government's desire to preserve some semblance of competition in a rapidly consolidating banking market. However, with its funding difficulties remaining acute and the sale of its UK mortgage book having fallen through.
Is keeping Permanent TSB alive worth the bother?
Might it not make more sense to fold what's left of Permanent TSB after its tracker mortgages have been "parked" with IBRC into Bank of Ireland? If Mr Masding recommends shutting down Permanent TSB then he could become the shortest-serving Irish bank chief executive ever.
Irish Independent
And when the staff pension fund (like all others) is severally under water how can a pension fund contribution of €60,000 be justified?
Do you have any idea of how difficult it is to fix PTSB or AIB for that matter?
Do you have any idea of the demand for such people worldwide?
Do you have any idea of how difficult it is to find someone who would be prepared to do that job in Ireland for any price?
Do you have any idea of how difficult it would be to tempt someone suitable from overseas to work in Ireland?
If Jeremy Masding can fix PTSB, I for one, would not remotely grudge him a very high salary.
If he can't fix PTSB and we need to pay €5m a year to someone who can fix it, then I would not grudge that either.
The idea that you can get someone for €100,000 a year to move to Ireland at their own expense to solve our problems for us is [ posting guidelines constrain me from finishing this sentence...]
So we should tell potential applicants for the job that their pension should be compromised to fund the existing deficit in the fund?
Do you have any idea of how difficult it is to fix PTSB or AIB for that matter?
Do you have any idea of the demand for such people worldwide?
Do you have any idea of how difficult it is to find someone who would be prepared to do that job in Ireland for any price?
Do you have any idea of how difficult it would be to tempt someone suitable from overseas to work in Ireland?
They are not the only banks (nor are we the only country) who now need fixing after a decade of bad and irresponsible banking practices.
Masding was mid ranking in Barclays
...
most of these guys are average
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