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

itsallwrong

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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.
 
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Jim2007

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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....
 

ajapale

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


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 Department of Finance 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
 

The_Banker

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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?
 

Brendan Burgess

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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...]
And when the staff pension fund (like all others) is severally under water how can a pension fund contribution of €60,000 be justified?
So we should tell potential applicants for the job that their pension should be compromised to fund the existing deficit in the fund?
 

itsallwrong

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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.
 

WizardDr

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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.
 

The_Banker

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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?
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.
 

gillarosa

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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?


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.
 

Brendan Burgess

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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.
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

Masding was mid ranking in Barclays
...
most of these guys are average
It costs €600k+ to get a mid ranking guy from Barclays.

Brendan
 

WizardDr

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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.
 

ladyeaston

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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,
 
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