Website for Shareholders of Irish Life & Permanent Group Holdings plc (IL&P)
Dear Fellow Shareholder in Irish Life & Permanent,

We are a shareholder in Irish Life & Permanent Group Holdings plc (IL&P) and are reaching out to you as a fellow shareholder.

As you know, the situation of the IL&P shareholders has deteriorated markedly following the recent stress tests on the PTSB Bank the Prudential Capital Assessment Review (PCAR) and the Prudential Liquidity Assessment Review (PLAR), which were completed by the Central Bank of Ireland (CBI) in March 2011. The PCAR/PLAR capital requirements for IL&P exceeded by far the most pessimistic analyst forecasts. The IL&P Management appeared shocked at the outcome of the stress tests. So what happened? Well, let us put it in the context of the following FACTS:

Fact 1: PTSB Bank is NOT insolvent. PTSB Bank is currently entirely solvent, in fact significantly overcapitalised, and adequately prepared to deal with the most likely macroeconomic scenario, as well as a realistic worst case scenario.

Fact 2: PTSB Bank does NOT NEED anywhere close to 4bn extra capital (even though it is REQUIRED to raise the 4bn forcefully imposed as a result of the stress tests). The recent European bank stress tests have confirmed that PTSB would not need more than 1.4bn extra capital under stress conditions -- almost three times less than according to the March 2011 stress tests.

Fact 3: The Irish State will NOT single-handedly save IL&P by bailing it out:

In this context, the present IL&P share price collapse has effectively resulted from fears that the Irish Authorities want to improperly disenfranchise current shareholders and grossly violate shareholder ownership rights via an interlinked and carefully crafted string of inequitable government measures.

Let us illustrate this very briefly on the following simple example:

Imagine that, while you are fully solvent, the Irish Authorities forced you personally into an ARTIFICIAL bankruptcy-like position by imposing on you an unrealistic requirement to hold at all times 16 times the amount of money that you really NEED to support yourself in a realistic worst-case scenario.

But that would not be the end of it ...

Then, the Irish Authorities would force you to sell your house, your car and all your valuables in order to cover a large 44%-part of this artificial and unneeded financial requirement that the Authorities have MADE UP for you in the first place.

But that would still not be the end of it ...

Then, the Irish Authorities would say: "You cannot just be in the artificial and unrealistic bankruptcy-like state that the Authorities have created for you -- the Government will provide the remaining 56% of the unneeded capital requirement that the Authorities have MADE UP for you (and that you have not yet covered yourself by having sold your house, your car and all your valuables) -- but "in return", the Government will become the exclusive owner of virtually all the assets that you still have left in your ownership. It does not matter that you have covered 44% of the artificial financial requirement -- we, the Government, disregard this contribution of yours (the contribution that the Government has forced you to make) and the Government will now be the owner of more than 99% of all your assets left (after the sale of your house, your car and all your valuables)".

And, by the way, to make you feel better, the Irish Authorities would also say "the Government are doing all this in the best interest of the country and its financial system, as well as to satisfy a prudent image of the Irish State".

How would you call such a behaviour by the Irish Authorities?

Well, that absurd scenario illustrates pretty much EXACTLY what is happening to the IL&P shareholders! 

Please read this website and join us to fight this incredible injustice.

While this website is owned and operated by Scotchstone Capital Fund Ltd, the views presented on this website are supported by now many IL&P shareholders, who have all united with a common purpose of defending their basic ownership rights. As of July 2011, we were supported by
a large group of c. 200 IL&P shareholders, both individual and institutional, both large and small, who represented c. 20% of the IL&P voting share capital. Obviously, those numbers have been subject to fluctuations; some shareholders may have sold shares and other shareholders may have joined the group or bought additional shares.

We cannot lose heart. We need to fight this incredible injustice to the end. And we will win in the end because justice and law are on our side. Please join us!

Thank you for your consideration.


Piotr Skoczylas

Managing Director and Fund Manager
Scotchstone Capital Fund Ltd

Phone: + 356 2788 8840
-   Firstly, IL&P does NOT need bailing out;
-   Secondly, IL&P is NOT being saved -- this viable two-pillar business is being dismantled just in case an entirely unrealistic scenario, based on exaggeratedly pessimistic assumptions, materialises;  
-   Thirdly, according to current plans, the Irish State will merely cover 56% of the unneeded 4bn capital requirement that the Authorities have made up -- the remaining 44% (more than 1.7bn) will be covered collectively by the IL&P shareholders.
The webiste has not been updated since 26 July 2011