Louth Labour TD urges caution on PTSB sale proposal

Louth TD and The Labour Party’s Finance spokesperson, Deputy Ged Nash, has said plans by PTSB to sell the bank should proceed with “absolute caution”.

On Thurday, the Board of Permanent TSB Group Holdings plc (PTSB) announced the commencement of a Formal Sale Process (FSP) for PTSB. 

PTSB is currently owned by a number of institutional and retail shareholders. The State is PTSB’s majority shareholder at 57.4%, having invested €4 billion in the bank following the banking collapse. The Minister for Finance is supportive of the Board’s decision to commence the FSP.

Commenting on Thursday following the announcement by PTSB, Deputy Nash said: “The only guiding principle FF and FG appears to have on the banks in which the State has held shares, is to put them back into full private ownership at the earliest opportunity.

“The announcement by PTSB today is the logical conclusion of that policy. Labour has long been of the view that the State should continue to hold a strategic shareholding not below 33% in PTSB, in order to retain some influence in an environment where competition is a significant problem for customers and for the indigenous economy.

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“The Minister for Finance, as the main shareholder must proceed with absolute caution, mindful of the way in which the banks have been managed, when in full private ownership, in the recent past.

“Government and indeed the regulator must be clear that a condition of any sale must be to protect the existing physical branch network and to ensure that there is no negative impact on jobs at PTSB.”