Irish Life and Permanent shareholders expected to challenge Govt cash injection
Irish Life and Permanent will hold an emergency meeting of shareholders this morning to discuss a recapitalisation plan for the bank.
Shareholders are being asked to approve a €3.8bn cash injection from the Government, which would result in 99% of the bank's ownership transferring to the Government.
However, it is reported this may be rejected.
Irish Life and Permanent is made up of two sections - the Permanent TSB bank and a life assurance company, Irish Life.
The bank was the largest provider mortgages during the boom and therefore has a huge exposure to the property market.
The Central Bank is therefore requiring the company to raise €4bn to cushion it against bad loans.
