Jun
10

Once Bitten Twice Shy as Irish Bank Investors Burned by Politics

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As Ireland prepares to start offloading its biggest state-owned bank, investors can draw this lesson from the sale of the smallest: buyer beware.

Days after Permanent TSB Group Holdings Plc investors paid top dollar to buy into the lender six weeks ago, the government began pressing lenders to cut mortgage rates. In Dublin on Wednesday, the nation’s financial regulator warned that the European Central Bank is worried by the impact of political pressure on the banking system.

“It shows you the danger of dealing with highly-regulated financial institutions that have a lot more constituents than just shareholders,” said Porter Collins, managing member at Seawolf Capital LLC in New York, which bought PTSB shares in the placing. The issue “muddies the story of what has otherwise been a fantastic turnaround at the bank and in Ireland.”…

Once Bitten Twice Shy as Irish Bank Investors Burned by Politics

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