Permanent TSB revelations catch markets off guard

THE shock disclosure that the banking arm of Irish Life & Permanent (IL&P) would require up to €2 billion in capital to meet tougher capital regulations has caught the markets off guard.

IL&P had been seen as a clean pair of hands, with no property lending in its portfolio keeping it out of the clutches of NAMA.

However, its banking arm, Permanent TSB, is the biggest mortgage lender in the country with close to 60% of its mortgage book based on tracker offerings.