Bank mergers

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Sunny

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So a Trade Union comes out with a report suggesting that Irish Nationwide, EBS, Permanent TSB and Bank Of Scotland should merge into a new entity to take on AIB and BOI.

Now without discussing the pros and cons of such a move, why on earth would a trade union suggest actively suggest it? A merger of 3-4 institutions would lead to hundreds of job losses. Have they not thought it out properly or am I missing something?

http://www.independent.ie/business/...-would-rival-big-two-says-report-2053027.html
 
Sunny said:
So a Trade Union comes out with a report suggesting that Irish Nationwide, EBS, Permanent TSB and Bank Of Scotland should merge into a new entity to take on AIB and BOI.

Now without discussing the pros and cons of such a move, why on earth would a trade union suggest actively suggest it? A merger of 3-4 institutions would lead to hundreds of job losses. Have they not thought it out properly or am I missing something?

http://www.independent.ie/business/...-would-rival-big-two-says-report-2053027.html
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Maybe the resultant Industrial Relations dispute in the merger would boost membership and give them another angle to whip up anti-banking headlines. Clever stuff if you ask me.
 
Typical cloud.... Her Majesity would be happy to off load BoS to the paddies.
 
Look where having the market dominated by two large players have gotten us. If anything, AIB and BOI should be broken up into many smaller banks.
Spread the risk.

Whatever unions come out with, do the opposite.
 
RonanC said:
This merger is old news to be honest with BOS being the new entrant into the merger.
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I know. The merger idea is not the story. The story is that it's the first time I have ever heard a trade union come out in favour of a merger that is bound to lead to massive job losses.
 
Sunny said:
I know. The merger idea is not the story. The story is that it's the first time I have ever heard a trade union come out in favour of a merger that is bound to lead to massive job losses.
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Not really that strange - if you think about the experience of trades union in the biggest State merger in recent years, the amalgamation of the Health Boards and resultant creation of the HSE, you can see why unions would think that mergers should not lead to job losses - on the contrary, they should lead to massive increases in numbers, with lots and lots of lovely additional layers of bureaucracy, just waiting to be filled with subs-paying union members.
 
Sherman said:
Not really that strange - if you think about the experience of trades union in the biggest State merger in recent years, the amalgamation of the Health Boards and resultant creation of the HSE, you can see why unions would think that mergers should not lead to job losses - on the contrary, they should lead to massive increases in numbers, with lots and lots of lovely additional layers of bureaucracy, just waiting to be filled with subs-paying union members.
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They are not that daft. At least I hope not. I cannot think of an example of bank mergers anywhere that have not led to job losses. They are not public sector or state institutions. Defeats the purpose of the merger if they can't make efficiency gains.
 
Sunny said:
Its easy to believe this is the answer but its not. You are better off having a number of large strong banks and some smaller institutions that are properly managed and regulated than loads of small banks.
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It's these 2 words I have a problem with. Too big to fail comes to mind.
 
Sunny said:
So a Trade Union comes out with a report suggesting that Irish Nationwide, EBS, Permanent TSB and Bank Of Scotland should merge into a new entity to take on AIB and BOI.

Now without discussing the pros and cons of such a move, why on earth would a trade union suggest actively suggest it? A merger of 3-4 institutions would lead to hundreds of job losses. Have they not thought it out properly or am I missing something?

http://www.independent.ie/business/...-would-rival-big-two-says-report-2053027.html
Click to expand...

Probably a merger would result in a lot less than the 750 job losses announced by the bank pulling out altogether.


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I assume the irish halifax manager/ceo will get a considerable golden handshake anyway despite failure to make the bank work here
 
Shawady said:
Probably a merger would result in a lot less than the 750 job losses announced by the bank pulling out altogether.


[broken link removed]
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Its unlikely. The same number if not more will go when Irish Nationwide, EBS and TSB merge.

It is a good example though of why we need a strong domestic banking sector.
 
Sunny said:
Its unlikely. The same number if not more will go when Irish Nationwide, EBS and TSB merge.

It is a good example though of why we need a strong domestic banking sector.
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Maybe. From this morning's Indo.

http://www.independent.ie/business/...s-to-go-as-big-banks-slash-costs-2055798.html

"Union sources also believe that an expected merger of EBS and Irish Nationwide over the coming months, and a further tie-up with Permanent TSB, could lead to up to 1,000 additional job losses"
 
Sunny said:
I know. The merger idea is not the story. The story is that it's the first time I have ever heard a trade union come out in favour of a merger that is bound to lead to massive job losses.
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I had occasion to contact the IBOA about a personal matter and I didn't even get a response. The are only interested in headline stuff.
 
What is with all this "taking on the BOI and AIB"..is that not how all our troubles started, with the invasion into this country of banks like BSI, Halifax etc. over the years, where the competition became so intense by introducing supermarket banking, which was suppose to be good for the customers, has now fallen flat on its face? And now with the announcement yesterday of BSI pulling out of this country, leaving a trail of devastation with staff and customers....all short term gain of course, IMO we need to stay loyal to our own Irish Institutions......there aint no such thing as a FREE LUNCH! Just my opinion, for what it is worth!
 
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