Former Irish Nationwide manager 'shocked' that Fingleton issued 'get-out-of-jail card' to borrower
Conal Regan, who joined the bank after Mr Fingleton left the society in April 2009, on Wednesday told the High Court that the defendant allegedly wrote a letter to a lender, Louis Scully, who borrowed almost €6 million to purchase land in Co Meath in October 2007, confirming that the sum loaned to him was a "non-recourse" one.
Advertisement
A non-recourse loan means that debt on a loan is secured by the collateral and cannot be pursued by the lender from the borrower.
The High Court civil case, which is in its third week, against the former Irish Nationwide Building Society (INBS) chief executive and managing director Mr Fingleton alleges that he negligently mismanaged the building society and engaged in property "gambles" with high-net-worth individuals in an informal and speculative manner in the mid-2000s, leading to fatal losses.
Mr Fingleton (87), who cannot give evidence due to ill health, joined the building lender in 1971 and retired in 2009. He held the roles of both managing director and chief executive in that time. At its height in 2007, INBS had reported assets of €16 billion but was a high-profile casualty of the financial crisis of 2008.
Liquidators for Irish Banking Resolution Corporation (IBRC) have taken the case against Mr Fingleton, who denies the allegation of negligent mismanagement.
Advertisement
The total losses at INBS had been estimated to be €6 billion. However, only €290 million in damages is being pursued by IBRC, relating to five specific loans, allegedly approved by Mr Fingleton.
The court has been told that Mr Fingleton was allegedly 'nodding through' top-ups and extensions to certain clients without the knowledge of the society's board.
At the High Court on Wednesday, former INBS manager Mr Regan, who joined the society in late October 2009, said he was dealing with "significantly" distressed credits at the lender.
When Mr Regan queried and tested loans issued to Mr Scully, he was told by letter from Mr Scully that the monies advanced to him were all "non-recourse" loans.
Advertisement
Lyndon MacCann SC, for IBRC's liquidators, was told by Mr Regan that a February 2009 letter from Mr Scully to Tom McMenamin, then-manager of commercial lending at Nationwide, referred to a list of borrowings by Mr Scully and other individuals that stated "nobody was getting any younger". Mr McMenamin wrote back saying that all loans to Mr Scully were made on a non-recourse basis.
Mr Regan said he could not find any reference "anywhere" in the paperwork about a non-recourse element in a loans to Mr Scully for Meath land – measured at 21,700 acres – at €598,7850, arising from a value of €275,000 per acre, which Mr Regan said seemed "exceptional, very, very high".
Mr Regan said he reacted by thinking "why in the name of God was a get-out-of-jail card given here, given the level of funding that had been provided?"
"I just could not understand that somebody could possibly believe that letter would trump agreements or legal documents signed and on a 'normal-recourse' basis. All of a sudden there is this and it just didn't make sense," Mr Regan told the court.
Advertisement
Mr Regan said he had looked at the files regarding Mr Scully's loans and that "non-recourse was mentioned nowhere. Nowhere".
Mr Regan told the court he asked Mr McMenamin "why in the name of god" was the letter of confirmation issued and claimed that Mr McMenamin told him: "I was only doing what the boss told me to do".
Mr MacCann asked who was being referred to as "the boss" to which Mr Regan said he was told by Mr McMenamin that this was a reference to Mr Fingleton Sr.
Later in December Mr Scully wrote to Mr Regan saying as far as he was concerned all of his business with the society was on an non-recourse basis and that this had been agreed by Mr Fingleton.
Advertisement
Mr Regan told Mr Justice Michael Quinn that it was a "shocking assertion" and that "individuals were not even putting hands in their pockets" if they had a "free bet" on getting planning or zoning for lands.
Ireland
Michael Fingleton engaged in 'solo run' trading wh...
Read More
"It was a get out of jail card. It was incredible. I have never, never come across it before," said Mr Regan.
In response to a request for any documentary evidence as to the agreement between Mr Scully and Mr Fingleton, Mr Scully writes back on March 25th, 2010, enclosing a letter of confirmation of the non-recourse loans from Mr Fingleton and writes "I trust this brings matters to a conclusion".
Mr Regan said he was left "absolutely shocked" by the letter from Mr Fingleton.
The case continues at the High Court.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
11 hours ago
- BBC News
Claire's collapses into administration putting 2,150 jobs at risk
Claire's falls into administration with 2,150 jobs at risk , Claire's had appointed administrators after struggles with online competition. Author, Tom Espiner & Faarea Masud Role, Business reporters, BBC News 13 August 2025 Fashion accessories chain Claire's has collapsed into administration in the UK and Ireland, putting 2,150 jobs at risk. The company has 278 shops in the UK and 28 in Ireland but has been struggling with falling sales and fierce competition. Claire's said all outlets will continue trading while it considers "the best possible path forward". Its administrators from Interpath said they will "assess options for the company", which could include selling the business to "secure a future for this well-loved brand". Claire's chief executive Chris Cramer said the "difficult" decision to appoint administrators allows its stores to remain open. Claire's had been particularly popular for its ear piercing services and was a common stop in the early 2000s for tweens and teens during weekend shopping trips in malls across the world. Its stores were known for their colourful selection of hair bands, earrings, jewellery, and occasionally for toys like slime and fluffy toys. The company will no longer be issuing refunds, nor accepting online orders. It will also not be delivering orders which have not yet shipped, but says customers are only charged on dispatch of items, so customers with outstanding online orders should not be out of pocket. Claire's said that, in cases where it cannot issue refunds, customers should check with their card issuer for other avenues for refunds. 'Part of my childhood' Caitlin, 21 (left) and Amy, 16 (right) from Oxfordshire were shopping at Claire's in central London on Wednesday and said the news was "quite sad because people have been going there since they were little." "It's a part of my childhood personally, said Caitlin, said she used to go a lot when she was around 11 years old. "It's aimed towards younger people and I don't know that there's something else on the market that does that. It's like a rainbow of things in there and I don't think a kid's going to be doing online shopping." They both came out of the shop not having bought anything as Amy had second thoughts about getting a piercing. 'Increased competition' The move in the UK comes after it filed for bankruptcy in the US earlier this month, where the firm said it was suffering from people moving away from bricks-and-mortar shops. The firm has $690m (£508m) of debt. The company operates under two brand names, Claire's and Icing, and is owned by a group of firms, including investment giant Elliott Management. Similar to its UK administration process, the firm said all of its US shops will remain open until an alternative future is found. Claire's is the latest casualty in several shop-heavy firms who have suffered from the decline of the High Street as people move more towards shopping online. In its US filing, Mr Cramer blamed "increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail" for the declaration of bankruptcy, as well as "debt obligations" and wider economic turmoil. He said on Wednesday that it was a "challenging period" and that "in the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward". Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the popularity of the Claire's brand had "waned". While stores were once great for brand recognition, she said younger people now pay more attention to brands making their mark online. "The chain is now faced with stiff competition from Tiktok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu," she said. Other analysts said many accessory shop chain like Claire's have been hit by US President Donald Trump's tariffs imposed on China and its neighbours. "A lot of that category is sourced from Asia, and any increase in import costs hits hard when your price points are low and margins are tight," retail analyst Catherine Shuttleworth said at the time of Claire's US bankruptcy filing. Get in touch Do you work for Claire's? Have you been impacted by the issues raised in this story? Contact form
BreakingNews.ie
21 hours ago
- BreakingNews.ie
Dublin City Council refuse planning retention to 10 apartment Airbnb operator
Dublin City Council has refused planning retention to a significant Airbnb operator close to Dublin Castle and Temple Bar to continue offering its apartments for short-term letting to tourists. Dublin Castle Suites advertises its 10 apartments on the Airbnb platform and can earn up to €350 per night per apartment on busy weekends. Advertisement The owner of the apartments facing onto Parliament Street and Dame Street would earn only a fraction of its current rental income if the apartments are to be rented for long-term letting only. A question mark has now been put over the lucrative enterprise following the City Council's decision to refuse planning retention to allow the apartments to continue to be used for short-term letting. Applicants, Olympia Real Estate Limited, now have the option of appealing the decision to An Coimisiún Pleanála, which may reverse the council's planning refusal. However, in its decision, the city council pointed out that there is a general presumption in the Dublin City Council Development Plan against the provision of dedicated short-term tourist rental accommodation in the city due to the impact on the availability of housing stock. Advertisement In refusing planning permission, the Council stated that Olympia Real Estate Ltd has not provided a sufficient justification for the provision of short-lease apartments at this location. The Council found that the proposal to continue the apartments for short-term letting 'would create an undesirable precedent for similar type development and would devalue property in the vicinity'. The planners concluded that the proposed retention of short-term residential use is not compatible with the architectural character, historic fabric and special interests of the protected structure. The Council planning report which recommended a refusal concluded that the continued use of the apartments for tourist accommodation 'would result in existing residential stock being lost to the residential housing system, meaning less long-term and secure accommodation will be available to the growing number of families and people who need it'. Advertisement Olympia Real Estate Limited lodged the planning application after the Council issued it with a Warning Letter over the use of the apartments for short-term letting. Planning consultants for the applicants, Cunnane Stratton Reynolds (CSR) state that 'enabling housing as short-term let accommodation in this instance redirects such demand away from mainstream housing'. The consultants state that 'the proposed tourism accommodation will assist in the attractiveness of the area for tourists and will promote a continued busy and vibrant city centre'. CSR states that its client's ability to acoustically meet the standards of normal accommodation is not available, given the protected status of the subject premises. Advertisement They state, 'in a period of substantial housing crisis these units cannot remain vacant'. Objecting to the planned retention, Fiachra Brennan of Oakcourt Park, Dublin 20 and who works on Parliament Street, said that 'these are high-quality urban apartments which should be available on the long-term rental market'. He said: 'The applicant has pointed to issues with regards to soundproofing and insulation – this should not preclude the use of the property for its intended purpose. He added: 'I work on Parliament Street – it is a vibrant area with a range of commercial and hospitality businesses but is also an important urban, residential city neighbourhood. This status should be protected.'
BreakingNews.ie
21 hours ago
- BreakingNews.ie
Man (20) accused of 14 counts counts of rape and sexual assault of man
A 20-year-old student has been charged with multiple counts of rape and sexual assault of another male in Dublin four years ago. The man, who cannot be named for legal reasons, was aged 16 and a juvenile at the time of the sexual abuse over a three month period in 2021. Advertisement He was arrested on Friday and charged with six counts of rape and eight for sexual assault at a specific address in south Co Dublin. He appeared before Judge John Brennan at a late sitting of Dublin District Court. Detective Garda Liam Conway said the young man's replied 'No' when each charge was put to him. The court heard that the Director of Public Prosecutions has directed that the man would face 'trial on indictment'. That means, due to the nature of some of the charges, he will be tried in the Central Criminal Court. Detective Garda Conway confirmed that the accused was a minor when the alleged offences occured and there was no objection to bail provided he obeyed a series of conditions. Advertisement Judge Brennan ordered him to provide gardaí with a contact phone number, remain contactable at all times, notify them of any address change, sign on at a north Dublin Garda station, and surrender his passport. Furthermore, he told the man that it was as conditions of bail that must not communicate with the complainant, directly or indirectly, including by social media. Defence counsel Kevin McCrave consulted with the accused who did not address the court, before telling the judge that his client consented to those terms. Judge Brennan warned there would be consequences for breaching them and the barrister stressed that he would explain that to his client, who has yet indicate a plea. Bail was set at €750 and he was ordered to appear at the Children's Court in September to be served with a book of evidence and returned for trial to the Central Criminal Court. Legal aid was granted after the court heard the accused was a student, on social welfare and unemployed.
