Irish Life & Permanent Shareholders

Myths	Facts
Myth 1: PTSB Bank needs €4bn.	Fact 1: PTSB does not need €4bn capital to deal with the most likely macroeconomic scenario and a realistic worst case scenario. IL&P stress tests completed by the Central Bank of Ireland only in November 2010 resulted in €0.24bn of extra capital requirements. There have been no developments in IL&P since last November, which would justify this more than 16-fold increase in the capital requirements. The artificially high, made up capital REQUIREMENTS now forcefully imposed on PTSB Bank are very different from the real capital NEEDS of the bank. 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. While we accept that the ARTIFICIAL requirements are justified to satisfy the financial markets that a line has been drawn under the Irish banking crisis, we DO NOT accept misusing this ARTIFICIAL state to disenfranchise shareholders.
Myth 2: PTSB Bank is insolvent.	Fact 2: While PTSB Bank (as banks across the world) is dependent on central bank funding, PTSB Bank is currently entirely solvent, in fact overcapitalised, and adequately prepared to deal with the most likely macroeconomic scenario, as well as a realistic worst case scenario. IL&P Chairman of the Board has admitted that the PTSB Bank is not on a brink of any insolvency -- far from it -- the bank can have a strong and viable future. IF the PTSB Bank were REALLY on the brink of a true bankruptcy, THEN it would mean that the IL&P Board have been lying to investors over the last quarters and for the purposes of the November 2010 PCAR stress tests, which would have been a serious criminal offence. PTSB Bank would be insolvent ONLY if the Government CREATED an ARTIFICIAL state of insolvency based on the ARTIFICIAL capital requirements that are very different from the REAL capital NEEDS. Equally well, the government could have imposed €40bn, or better yet €400bn, ARTIFICIAL capital requirements and claim that the Bank is THEN insolvent. Every bank in the world could be made ARTIFICIALLY insolvent on that ridiculous basis. Making shareholders pay for an ARTIFICIAL insolvency is simply another form of stealing. IL&P Chairman of the Board has agreed that it is very unfair and wrong.
Myth 3: The Irish State will single-handedly save IL&P by bailing it out.	Fact 3: The Irish State will NOT single-handedly save IL&P by bailing it out: Firstly, IL&P does NOT need bailing out. Secondly, IL&P is not being saved -- this entirely viable two-pillar business is being forcefully dismantled just in case an entirely unrealistic, made up scenario materialises. And thirdly, according to current plans, the Irish State will 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 by selling the most valuable assets belonging to IL&P shareholders.
Myth 4: Taxpayer-funded bank guarantee is there to subsidise the PTSB Bank	Fact 4: The main reason for the Irish bank guarantees is to support the Irish economy and protect depositors -- not to subsidise banks. Without the bank guarantees: -- Lending activity could have been much more adversely impacted; -- Depositor savings could have been at risk; -- The Irish economy could have completely collapsed.
Myth 5: There won’t be any fire sale losses imposed on the IL&P assets.	Fact 5: The IL&P €2.2bn PLAR requirements effectively force fire sale losses on IL&P. If it were not for those forcefully imposed fire sale losses and the exaggeratedly conservative PCAR requirements, IL&P would hardly need to raise any additional capital.
Myth 6: IL&P shareholders will be certainly treated fairly.	Fact 6: IL&P shareholders are being deprived of basis ownership rights: - NOT because the 4bn ARTIFICIAL capital requirement is imposed (which we accept) ... - NOT even because shareholders are FORCED to sell their most valuable assets to meet the ARTIFICIAL capital requirement (which we accept in principle under certain conditions) ... But because €1.7bn proceeds from the sale of assets belonging to shareholders and other capital-generating measures by shareholders are NOT being recognised by the Irish Authorities as a key capital contribution from shareholders to meet 44% of the ARTIFICIAL capital requirement. The Facts in Detail tab describes in detail the unprecedented stage-managed string of governmental actions, which crudely deprive the IL&P shareholders of their basic ownership rights.
Myth 7: Irish Authorities are forced into the above-mentioned dishonest actions by the EU/IMF/ECB "Troika".	Fact 7: It is true that the PCAR/PLAR stress test outcomes were influenced by the requirements of EU/IMF/ECB. However, The Irish Authorities are not coerced by EU/IMF/ECB into taking any undue actions that would deprive shareholders of their basic ownership rights. Don't let anyone deceive you! Blaming an imaginary "Troika Boogeyman” is a dishonest, distracting tactic.
Myth 8: IL&P shareholders are foreign investors.	Fact 8: The majority of the IL&P shareholders are 100,000 individual Irish shareholders. It simply seems inconceivable that the Irish Government would deprive 100,000 of its own citizens of the most basic ownership rights. But it is happening!