Carpetbagging .... what does the future hold for the Irish?

EBS

<!--EZCODE BOLD START--> It could even lead onto thousands of EBS members receiving substantial lump sums after a heave against their society directors here!<!--EZCODE BOLD END-->

And then again, it may not! ;)
 
Size of EBS windfall

CM raises an interesting point.

Does anyone out there know, based on the precedent of Irish Permanent or other building societies abroad, approximately how much of a windfall members could expect in an EBS demutualisation ??
 
Actually

My point was that there is <!--EZCODE ITALIC START--> absolutely no indication<!--EZCODE ITALIC END--> that an EBS DM is likely in the short to medium term. EBS is committed to its mutual status and I've never heard of any great (or even small) urge on the part of its members to change this. In this context, surely talk of the potential windfalls accruing to members in the even of a DM is purely academic?
 
EBS to convert?

As an experienced bagger (ain't that right G), the EBS is the most mutual society I have come across, can't see them converting.

Someone touched on the £100 rule. In the UK, and I think it also applies in Ireland, to become a member you have to have £1 in the account, however...., to be a <!--EZCODE BOLD START--> qualifying<!--EZCODE BOLD END--> member you have to have £100.
 
Re: EBS to convert?

An interesting thread, it'd be a real pity to let it die down.

Although, as CM and Smiler have pointed out, the EBS board and the membership in general, have no real appetite at this time to convert, this may not always be the case. As the members of Equitable Life recently discovered, things in the financial sector can change very quickly indeed.

The real question to ask is whether the EBS would be better led in the hands of the in-situ Board, or whether it would attract better management and offer better value by being in private hands.

As can be seen from any of the best buys tables mentioned on this site, the EBS currently languish somewhere in the middle of the market in terms of value being offered to customers / members, so there is a real business case for looking at an alternative ownership structure.

I accept that the Board are strongly pro-mutual at this time, but then again, why wouldn't they be ? They're doing quite well out of the status quo, thank you, and to hell with the begrudgers.

The same attitude was taken by the board of Bradford and Bingley in the UK, but they still converted.

Looking at the current state of the stock market, it is unlikely that members would vote for demutualisation at this time, but once things improve, who knows ??

I think £100 invested getting a meagre rate on a Savings account is well worth the risk of a healthy windfall in 5 - 10 years time.
 
EBS

<!--EZCODE BOLD START--> As can be seen from any of the best buys tables mentioned on this site, the EBS currently languish somewhere in the middle of the market in terms of value being offered to customers / members, so there is a real business case for looking at an alternative ownership structure.<!--EZCODE BOLD END-->

As far as I can see from the latest Finfacts figures, EBS stand third cheapest of 12 in the standard variable annuity rate providers. MOre recently they have been one place off this in fourth place. Either way, hardly "languishing mid table"?
 
Re: EBS

CM,

Here are the gross rates, as they stand today from FinFacts:

AIB Stand'd Var'ble*&nbsp &nbsp &nbsp &nbsp AIB Group&nbsp &nbsp &nbsp &nbsp 4.25%
BOS Variable*&nbsp &nbsp &nbsp &nbsp Bank of Scotland&nbsp &nbsp &nbsp &nbsp 4.29%
Uls Stan'd Var Ex* Ulster Bank&nbsp &nbsp &nbsp &nbsp 4.60%
EBS Variable &nbsp &nbsp &nbsp &nbsp EBS Building Soc&nbsp &nbsp &nbsp &nbsp 4.60%
Ir Perm Variable*&nbsp &nbsp &nbsp &nbsp Irish Permanent Plc.&nbsp &nbsp &nbsp &nbsp 4.70%
TSB Variable*&nbsp &nbsp &nbsp &nbsp TSB Bank&nbsp &nbsp &nbsp &nbsp 4.70%
BOI Variable*&nbsp &nbsp &nbsp &nbsp Bank of Ireland&nbsp &nbsp &nbsp &nbsp 4.74%
F/Act Variable*&nbsp &nbsp &nbsp &nbsp First Active&nbsp &nbsp &nbsp &nbsp 4.74%
Tusa Variable*&nbsp &nbsp &nbsp &nbsp Tusa Agent of TSB.&nbsp &nbsp &nbsp &nbsp 4.75%
ICS Variable&nbsp &nbsp &nbsp &nbsp ICS Building Soc&nbsp &nbsp &nbsp &nbsp 5.20%
ACC Stand'd Var ACC Bank&nbsp &nbsp &nbsp &nbsp 5.25%
Ir Nat Variable Ex&nbsp &nbsp &nbsp &nbsp Irish Nationwide&nbsp &nbsp &nbsp &nbsp 5.95%

The median porint from this table is 4.72%, indicating that the "premium" being offered to members is a paltry 0.12%.

Hardly worth writing home about now, is it ? And the fact that AIB can offer a mortgage at such a consistent discount to EBS standard rates, whilst also paying dividends to shareholders really does give the lie to the argument that mutuality is best for customers and the business owners.
 
EBS

Ranking by gross/nominal rate is meaningless. The real cost of a loan is indicated by the APR or alternatively the cost per thousand. When ranked by these criteria (no APR quoted for AIB but they are cheaper than EBS) EBS are still fourth in the list. I don't disagree with the gist of your argument (but remember - it's only in recent years that AIB have been among the cheapest lenders) but I was just pointing out that your point about EBS "languishing mid-table" is slightly overstated.
 
Re: Carpetbagging .... what does the future hold for the Iri

Hi CM,

Point taken !

Have a good Christmas!

Nollag
 
Carpetbagging:New entrant to the irish market...

As Rabobank are a dutch mutual, will opening an account with ACC lead to a windfall if Rabobank de-mutualise????
Does anyone have information on Dutch mutuals'? Has there being the same de-mutualising process there as in Britain and Ireland recently?
 
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