EBS Controversy

[pete]

I am an EBS (Building Society) member but like a lot of people rarely pay much attention to the AGM. This year its caught my attention due to the public spat between Directors.

Does anyone understand it? Were the directors trying to investigate selling the Building Society before the members found out. There is no doubt selling up would net the Directors a lot more money than the members...

:confused:

[Raheny Red]

I am a member too, the Grandmother set it up a few years ago when I was a kid. She put her address on my account so she got the letters regarding this meeting but she later threw it out thinking it was junk mail. Anyway, in today's Herald there is a write up on this saying that the 280,000 EBS members could get up to €3,700 each - but the higher up people in the organisation say that there will be no sale to come! It's a load of :confused: for me!

[Macy]

Does anyone understand it? Were the directors trying to investigate selling the Building Society before the members found out.
Seems very much he said/ she said, so hard to make sense of it from a members perspective. Seems to relate to some proposal they were investigating with rabobank, but then the letter from the Board say that all the stuff she's kicking up about now she voted for at the time. I'm not sure it's directly about floating it.

Personally I hope it stays mutual, as they were by the far the best to deal with when we were looking for a mortgage. No nonsense like we got with other institutions who came up with bizarre stuff to try and get us to switch loans to them (they'd give us more money even though their interest rates were higher!) and no hard sell on insurance products either.

[John83]

Seems very much he said/ she said, so hard to make sense of it from a members perspective. Seems to relate to some proposal they were investigating with rabobank, but then the letter from the Board say that all the stuff she's kicking up about now she voted for at the time. I'm not sure it's directly about floating it.
There were three points she raised, the Rabodirect one being the first. I thought that the board's reply on that point was evasive.

Who knows what's really going on though? Internal politics are a curse.

[pete]

I thought EBS were good when I initially got my mortgage but they are not competitive now & when I can organise I will leave. I used to have current account years ago but service & facilities was rubbish so I left.

I was trying to update my mortgage & they annoyed me that would charge search charges when they already hold the deeds. :rolleyes: Their tracker mortgages are a joke & long way from being competitive with loweest rate <.8% of ECB compares to 0.5 & 0.6% everwhere else.

IMO if they are not competitive what is the point of being mutual society. I also was unconvinced by the boards answer to questions & when looking at the profiles looked more like old boys shop than anything else. At the moment I see no point to mutual society as gives Directors a free ride as will never be as accountable to society members as shareholders in a public company... On the otherhand members earn feck all from sale & Directors would make out like bandits.

[Raheny Red]

I haven't got a clue of this business jarken but if they were to be put up for sale how would the deal be spread out amongst the members??

[pete]

I haven't got a clue of this business jarken but if they were to be put up for sale how would the deal be spread out amongst the members??

I don't know but I think its typical that mortgage holders get more than savers. Won't be large amount of money as 100k+ so to get on average the EBS would have to be worth 1bn which i doubt.

I am sure the Directors who would negotiate a deal would ensure they rewarded with well paying easy jobs plus cash pay out.

Tinney lost her re-election bid by narrow margin of 9,417 for v 10,252 against.

RTE (http://www.rte.ie/business/2007/0416/EBS.html)

I read earlier in the week usually only about 10,000 people vote so the publicity seems to have increased voter numbers.

I presume the board re-elected but no results given.

I wondered why Tinney making such a fuss of board not supporting her recommendation so assumed no fire without smoke as Board dodging questions...