| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Oct 21, 2010 - 5:48:50 AM

Fingleton told Government 10 days before issue of State bank guarantee, INBS was 'well managed' and 'very profitable'
By Finfacts Team
Oct 20, 2010 - 6:46:29 AM

Email this article
 Printer friendly page

Irish Nationwide Building Society (INBS) chief executive, Michael Fingleton, told the Government 10 days before issue of State bank guarantee, that the society was 'well managed' and 'very profitable.'  

The Dáil Public Accounts Committee (PAC) on Tuesday published additional copies of Department of Finance paperwork from the period leading up to the issue of the State banking guarantee at the end of September 2008.

Fingleton sent a letter to David Doyle, secretary general, of the Department of Finance on Sept 19, 2008 claiming that despite its liquidity problems, it was a 'very profitable and viable financial institution.'

On Sept 05, 2008, Moody's, the international ratings agency, had downgraded INBS debt because of the exposure to commercial property and development, accounting for 80% of the loan book.

The State has committed capital of €5.4bn to save INBS from collapse.

On Sept 18, 2008, Basil Geoghegan of Goldman Sachs, the US investment bank, e-mailed the Department of Finance regarding an assignment to review  INBS's books and he referred to the society with the code 'Harmony.'

Geoghegan asked: "has there been interaction with the Irish auditing firms to discuss what are they going to do at year end across the sector? They have a huge responsibility to discharge this year."

They also had a huge responsibility to discharge prior to the crisis.

Last April, INBS reported a massive loss of almost €2.5bn for 2009 after providing €2.8bn for loan losses, having become a commercial property property lender in recent years. The society was established in 1873 by "far-sighted working-class men."

Under the management of Michael Fingleton over a 37 year period, the society was nominally owned by the depositors and after a reckless concentration on commercial property lending during the bubble, Fingleton was forced out with €27m pension pot and he had his board nod through a €1m bonus for failure as well as over €400,000 in lieu of holidays not taken. Almost half the commercial property lending was in respect of developments in the London area.

The Irish Industrial Benefit Building Society, forerunner of Irish Nationwide, began in October, 1873, when it was set up in a small room at 4 Harmony Row, off Fenian Street, Dublin 2, by "a small group of far-sighted working-class men."

Irish Industrial Benefit didn't trade from Harmony Row; that began on November 1 1873, from offices at 35 Denzille Street, Dublin 2. Later the original society was to move to 108 Lower Baggot Street. Then in July, 1927, the society moved to 6 Upper Camden Street, eventually moving to the adjacent 7 and 8 Upper Camden Street. The society retained its headquarters on Camden Street for virtually 70 years.

In 1975 the name of the organisation changed from the Irish Industrial Benefit Building Society to Irish Nationwide Building Society.

Finfacts report: Lenihan says failure of Anglo Irish Bank would "bring down" the country - - see 2 key videos here on the State bank guarantee.

Correspondence, dated 13th October, from Kevin Cardiff, Secretary General, Department of Finance:

  • Correspondence, dated 13th October, from Mr. Kevin Cardiff, Secretary General, Department of Finance: Cover Letter Cover letter

  • Correspondence, dated 13th October, from Mr. Kevin Cardiff, Secretary General, Department of Finance: Appendix 1 Appendix 1

  • Correspondence, dated 13th October, from Mr. Kevin Cardiff, Secretary General, Department of Finance: Appendix 2 Appendix 2

  • Correspondence, dated 13th October, from Mr. Kevin Cardiff, Secretary General, Department of Finance: Appendix 3 Appendix 3 - - Fingleton letter to DoF

Documents previously issued by the PAC.

Related Articles
Related Articles

© Copyright 2010 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March