Your questions answered: what happened yesterday
Published 21/07/2011 | 05:00
Q. What does it all mean for shareholders?
A. If shareholders had passed yesterday's motions, the Government would soon have taken ownership of 99.9pc of Irish Life & Permanent.
Now, the Government looks set to bring a motion to nationalise IL&P, potentially leaving shareholders with nothing.
A rebel group of shareholders has vowed to take legal action against any nationalisation process, as they believe they can win, bring in fresh private investment and leave existing shareholders with a valuable stake in IL&P
Q. What about people who have savings with Permanent TSB?
A. It's business as usual for customers of the bank. Their savings remain covered by the €100,000 government guarantee scheme. Anything above €100,000 looks safe too, since the Government is determined that no bank shall collapse.
Q. And those who have life insurance policies with Irish Life?
A. Business as usual for them too. Irish Life is still extremely likely to change ownership, but any new owner will honour all life insurance policies already in force. The only change customers may see is when they come to take out new policies.
Q. What happens to staff?
A. It's very likely Irish Life and Permanent TSB will still split, with Irish Life finding a new owner and Permanent TSB becoming almost nationalised.
Irish Life staff will technically move to a new company, but their existing terms and conditions are protected under 'transfer of undertakings' legislation.
Permanent TSB is likely to lay off staff over the coming years, as part of a wider cull of banking jobs.