Pensioners plan Post Office picket over Pibs
Pensioners who invested their savings in bonds issued by the old Bristol & West Building Society are preparing to picket the Post Office over its joint venture with Bank of Ireland (BoI).
They are furious that Irish finance minister Michael Noonan, left, is considering exercising a power that would see UK pensioners lose around £40m of Bristol & West permanent interest bearing shares (pibs). The state is a 15 per cent shareholder in BoI, which bought B&W in 1996, but the bank has recently struggled and is trying to complete the last elements of a €4.2bn capital raising.
This includes potentially wiping out the pibs-holders, who are typically retirees who bought the high-yielding bonds to help them through their old age. The pibs pay out 13.375 per cent of their face value per year, meaning that they were particularly useful for people with few savings as they approached pensionable age.
Mr Noonan announced on Wednesday that he might exercise the option of wiping out these and other junior bondholders to raise the last €350m, despite BoI withdrawing a similar plan in the summer. He has given the pensioners a week to respond.
However, a core group of campaigners has been plotting to picket post offices in the event that Mr Noonan, left, carries through such a plan.
BoI signed a deal in 2004 to provide savings-account services to the Post Office, which was first made aware of the latest plans in September. A campaign spokesman said BoI was "unfit" to run UK savings accounts.
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 Watch: Man takes selfie every mile of 2,600 mile hike, creates amazing timelapse video
- 4 The day I starred in Only Fools and Horses
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...