Business World

Saturday 24 August 2019

Media Bites: Sunday Independent - Permanent TSB suspect further problems with mortgage products

Permanent TSB
Permanent TSB

Permanent TSB officials suspect there are further serious problems with the bank's mortgage products beyond the tracker mortgage scandal that saw 50 people lose their homes.

Correspondence between Permanent TSB's chairman Alan Cook and Finance Minister Michael Noonan in mid-September show the bank admitting there is "a real risk of further customer-impacting issues", prompting it to undertake "a comprehensive review of all our mortgage products".

Sunday Telegraph

Lloyds could have to rein in its dividend payouts as a result of the Bank of England's stress tests, if the regulators order the bank to build up its financial resources further.

Officials are testing the seven biggest banks in the country to see how they would cope with a fictionalised economic crash. The results of the annual test will be published on Tuesday.

All of the banks are expected to pass the test without having to raise extra capital, but they could be told to limit their dividend payouts to make sure they build up their buffers further ahead of the much tougher stress tests they will face in the coming years.

Sunday Times

Paddy Power and Betfair are planning to cut their combined workforce if their €8bn merger goes ahead as planned.

A circular published on Friday shows that the merger would save them £25m from labour costs due to a reduction in their number of outlets and employees.

Betfair employees 1,900 staff, while Paddy Power has 5,000. The merged company is set to be based in Dublin. Paddy Power shareholders are set to meet to vote on the deal on December 21.

Sunday Business Post

Tax receipts for the month to the end of November are expected to show that the economy is growing at a rate near to that seen during the height of the Celtic Tiger.

The figures, to be revealed at the end of the week, have been described by sources as "out of this world". At the end of October corporation tax revenue was €2bn higher than had been forecast, and may be ahead by €2.5bn or more by the end of the year.

Financial Times

A number of large international companies, including Vodafone, Panasonic and Nestlé, have urged UK Prime Minister David Cameron to rethink his plans to reduce green energy subsidies.

In a letter to Mr Cameron the firms say that a string of renewable energy cutbacks unveiled recently are a risk to UK businesses.

The letter comes ahead of a meeting of more than 130 world leaders today in Paris to agree the first global climate change agreement in 18 years.

Irish Independent

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