Dáil Éireann Debate, Wednesday - 10 March 2010
88 Deputy Liz McManus asked the Minister for Finance the actions that are being taken to improve the funding position of a building society (details supplied); if his attention has been drawn to the imminent plans to spin the bank off from its parent holding company and insurance arm; if options are being explored which would see this building society form part of a third banking force. [11635/10]
Amharc ar fhreagraThe Deputy will be aware that the named covered institution operates as a commercial financial institution subject to relevant regulatory approval. On 18 January 2010, the institution restructured its organisation by way of a scheme of arrangement with shareholders to form a new group holding company, the purpose of which is to maintain maximum flexibility in the group's corporate structure. I have indicated publicly that I am considering all options for restructuring within the banking sector, which is an ongoing matter. Currently I do not favour any particular option.
89 Deputy Joanna Tuffy asked the Minister for Finance the reason the de-listing of a bank or other company from the stock market would make the later disposal, or part disposal, of same more difficult and expensive; and if he will make a statement on the matter. [11653/10]
Amharc ar fhreagraI would note that I have no function in relation to listing of companies or otherwise. In general terms, the maintenance of a stock market quote for a company such as a bank allows a value to be put on its business throughout the business cycle. A listed bank also continues to report on its performance to the market, filing its accounts and other requirements as appropriate. Once a company de-lists from the stock market, the market valuation guide as to what that company is worth in overall terms is no longer available. In addition, should the company become a private company the disclosure requirements for the entity may reduce. To effect a partial or complete sale in the future of such a de-listed company, would therefore require a detailed information gathering process and valuation exercises.
