47% of Newbridge CU loans were in trouble by March

//47% of Newbridge CU loans were in trouble by March

47% of Newbridge CU loans were in trouble by March

The High Court has granted orders to the Central Bank allowing some of the material which supported its application to have a special manager appointed to Newbridge Credit Union to be made public.

The decision to appoint a special manager in January last year eventually led to the credit union being subsumed into Permanent TSB for €54 million last month.

Any material which would disclose the private affairs of individual credit union members will not be disclosed.

Central Bank lawyers applied to the High Court President, Mr Justice Nicholas Kearns, for the publication orders this morning.   

The directors of the credit union consented to the publication on condition documents sworn by them, which are critical of the Central Bank, are also made public.

The chairman of the board of directors, Ben Donnelly, said in one document that it was most regrettable that the Central Bank’s “ill-conceived intervention” had, after two years and great cost to members, resulted in the loss of credit union services to Newbridge.  

He said it had also resulted in the loss of its landmark building, a loss of confidence in the wider credit union sector and a cost to the taxpayers “that amounted to multiples of the regulatory deficit created by the imposition of increased provisions”.

The court was told the material would be made available on the Central Bank’s website.

Newbridge Credit Union was transferred to PTSB in November after a late night High Court sitting.  

A special manager had been appointed to the credit union in January last year over an alleged breach of solvency rules.   A proposed merger with Naas Credit Union was rejected.

Newbridge Credit Union claimed the laws used to bring the PTSB deal into effect were never intended for credit unions.   

It also claimed its difficulties arose from a run on deposits because the Central Bank had seized control of the credit union.

RTÉ News – Business Headlines

By | 2013-12-12T00:24:04+00:00 December 12th, 2013|Business|0 Comments