Interesting article on "Jeremy Masding chief executive & PTSB's future

Discussion in 'The PTSB SVR campaign' started by reddanmm, Apr 7, 2012.

  1. reddanmm

    reddanmm Frequent Poster

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    Last edited: Apr 7, 2012
  2. itsallwrong

    itsallwrong Frequent Poster

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    Last edited: Apr 8, 2012
    I really feel this bit...

    '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.'

    and..

    At the moment, most of these unfortunate homeowners 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.
     
    Last edited: Apr 8, 2012
  3. Jim2007

    Jim2007 Frequent Poster

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    Well from this it would appear that any change in the current situation will have to be funded by the taxpayer! And in the current climate it is hard to see much support for such a move, so not much hope for borrowers I guess....
     
  4. ajapale

    ajapale Moderator

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    Does anyone know who wrote this well constructed indo article? There is no by-line in the linked article.

     
  5. reddanmm

    reddanmm Frequent Poster

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    Hi Ajaple

    I think it was John Mulligan a business journalist with the Indo.
     
  6. The_Banker

    The_Banker Frequent Poster

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    Apologies for resurrecting an old thread but I think this is relevant...

    Mr Masding is on a salary of €400,000 plus he is getting €60,000 towards his pension each year. (as reported on RTE last night)
    On top of that he is getting vouched expenses of €57,000 to move to Ireland.

    I think this is obscene. If you apply for a job of your own free will why should you be compensated for moving to where that job is?
    And when the staff pension fund (like all others) is severally under water how can a pension fund contribution of €60,000 be justified?

    This bank is losing €500 million a year and customers are being squeezed to make up the shortfall and the CEO is on a package like that? Madness.

    Is there any way of finding out if the other executives who have moved to this bank from the UK been "compensated" also?
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    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?
     
  8. itsallwrong

    itsallwrong Frequent Poster

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    While some might not like the cost of the medicine, the treatment is slowly working. The last bunch of muppets running the
    PTSB hiked the interest rate and crippled the customers with extra charges all over the place.

    Don't get me wrong - I am no lover of any banker no matter what they get paid or do, but he has done huge amounts to
    repair the image and credibility of the bank.
    Mainly he reduced the SVR rates (be it under pressure) which nobody can argue with, is unprecedented in this country.
    Compaired to history, 400k is small pay for a CEO of a bank.
    Whether or not he can save the bank remains to be seen.
    Sometimes the ship sinks no matter who is at the wheel.
     
  9. WizardDr

    WizardDr Frequent Poster

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    Masding was mid ranking in Barclays
    Lectured the staff on Barclays-Barclays-Barclays
    er then the LIBOR scandal erupted ..Barclays at the fore front

    you get a job in Banking in Ireland if you havent got an Irish passport

    most of these guys are average

    Bain are expensive - just means the ole Department of Finance haven't got
    confidence that any of their guys earning a few shades south of €400k could do the job...but then you see the folk they appoint as
    public interest directors - astounding and outspoken and they had AIB shivering in their boots - its all
    about fashion and Paddy Anybody is not fashionable.

    And who introduced Aynsley - step forward Mike Soden!

    If somebody presented me with a bill for €57k for moving from the UK I would be arrsted for murder shortly after. Its a great focus on costs that he hires ome of the most expensive set of consultants when he apparently knew how to do it himself.

    we have a new landlord class.
     
  10. The_Banker

    The_Banker Frequent Poster

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    Brendan,
    Ill try to deal with your questions one by one. Im no financial whizz kid but an an ordinary PAYE worker I am putting my slant on it.

    Do you have any idea of how difficult it is to fix PTSB or AIB for that matter?
    No I dont. But in this environment every job is difficult. Be that a CEO, junior manager or employee.
    I have no problem with the basic salary. I certainly do with the add on's.

    Do you have any idea of the demand for such people worldwide?
    I don't. But he applied for the job so he should locate here if he so wishes and do it with the salary he is being paid.

    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?
    No I don't. But the only reason someone at his level wouldn't do it for less is because the level of renumeration for the executive class is so far off the scale compared to the standard of living of the rest of the country.

    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?
    As I understand it there were quite a lot of CVs submitted for the job.

    If Jeremy Masding can fix PTSB, I for one, would not remotely grudge him a very high salary.
    Nor would I. Lets say he fails. Will he hand back the money he was paid? I dont think so. Why is he getting this large salary, plus add on's before he has fixed the issues?
    To my mind if he fails he wins and if he succeeds he wins. Surely that is wrong? A simple google search of Jeremy Masding will give you an insight into his banking career. He has hardly set the world alight.

    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.
    So you would expect the Irish taxpayer to pay €5 million a year to someone who you think can? Why not pay then €5 million after they save it?
    Or why should it be deemed necessary to save at all. Its not a pillar bank, they are lending to no one. Sell off the loan book and deposit book and stop it being a drain on taxpayers.

    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...]
    Like I say.. I dont have a problem with his €400,000 salary. I do with his €60,000 pension contribution and his €57,000 relocation fee.

    So we should tell potential applicants for the job that their pension should be compromised to fund the existing deficit in the fund?
    No, He should get the same percentage pension contribution as all the other staff in the organisation.
     
  11. gillarosa

    gillarosa Frequent Poster

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    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. I don't feel the "fixing" is something that will stem from highly paid appointments, and perks to people at the top. After all that was in place during the period that we were driven at high speed into this mess.
     
  12. Brendan Burgess

    Brendan Burgess Founder

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    That is my point entirely! Thre are so many banks which need fixing and so few people who can fix them as most bankers are tainted. So there is a high demand for good bankers and a very small supply - which pushes prices up.

    Or as WizardDr said

    It costs €600k+ to get a mid ranking guy from Barclays.

    Brendan
     
  13. WizardDr

    WizardDr Frequent Poster

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    @gillarosa - its actually a failure in regulation. This stuff is not science - it should be in the Arts faculty as the codology is that mathematical models can capture 'risk'.

    Banks spent fortunes on gurus that 'knew' all about Basel II; capital adequacy; VaR etc

    Blaming banks is similar to blaming taxi drivers for their mess - they participate and stretch the rules as much as they can - absolutely no angels - but hardly the folk to rein anything in.

    Its going the other way with Credit Unions - a regulator that sees no credit unions as no risk. Brilliant! You can be a Director of 50 SPVs with billions in assets - but you wont be able to be on the Board of multiple credit unions! Brilliant for its absolute ridiculousness but we now have lunatics running the asylum. Wheres the concern about this?

    We are all experts when the horse has bolted.
     
  14. ladyeaston

    ladyeaston New Member

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    Hi I was sent your link while i was on another site where I wanted to get in touch with other about shared ownership , and was so impressed with the information you have on it, thank you so much, because i dont know what to do about mine and next year will see changes with the housing plan I do need your sage,