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Irish Times
06-05-2025
- Business
- Irish Times
Michael Fingleton for beginners: Former head of Irish Nationwide faces civil trial
Former banker Michael Fingleton faces a civil trial on Tuesday alleging that he negligently mismanaged the Irish Nationwide Building Society , which failed earlier this century following a financial and property crash. Now in his late 80s, Mr Fingleton ran the finance institution for about 38 years, first with the title managing director and later as chief executive. He took over its management in 1971, when it employed just five people, and grew it to a business with assets of some €16 billion at its height in 2007. However, the lender was one of the worst casualties when a property investment bubble burst in 2008, sparking a financial crisis that threatened to leave the State insolvent after the then government guaranteed Irish banks' liabilities. READ MORE Losses were estimated at €6 billion and stemmed from commercial property loans, an area of business where Irish Nationwide was very active. Mr Fingleton left in 2009. The State-run National Asset Management Agency took over its commercial property loans in 2010. The following year, the government merged it with Anglo Irish Bank and established the Irish Bank Resolution Corporation to take over the remains of both lenders. Mr Fingleton and other executives subsequently faced questions about their management of Irish Nationwide, particularly into whether the company followed proper procedures, or applied prudent safeguards, when approving some commercial property loans. The central bank began a long inquiry into the running of Irish Nationwide in 2017. But it dropped any proceedings against Mr Fingleton in 2019 on the grounds of his ill-health. 100 days of Trump: 'It's like The Karate Kid, tax on, tax off, tariffs on, tariffs off' Listen | 42:49 However, the liquidators of the Irish Bank Resolution Corporation are continuing to pursue the civil case that the State institution began in 2012. The claim was originally for €6 billion, but has since been pared back to €290 million and focuses on five loans. The former building society boss, acting through his wife Eileen Fingleton and son Michael Fingleton jnr, under their powers of attorney, attempted to halt the case through court challenges and appeals. His lawyers argued that he could not receive a fair trial as a stroke had incapacitated him several years ago and because of the passage of time since the alleged events. However, the Supreme Court ruled late last year that Mr Fingleton should face the civil trial. Mr Justice Séamus Woulfe said the Court of Appeal was correct in finding that Mr Fingleton's inability to instruct his lawyers or to give evidence in court was not enough to prevent the case going ahead. During his career, Mr Fingleton became a well-known figure in Irish business. He was reported to have been worth €75 million in 2006, when property values were then at their most inflated. His son told the courts that the one-time finance boss now has €25,000 in two personal bank accounts and outstanding judgment debts of more than €10.7 million as of late 2022. The civil trial is scheduled to begin on Tuesday morning in the High Court.
Irish Times
22-04-2025
- Business
- Irish Times
IBRC liquidators hand €360m over to State as wind-up nears end
The liquidators of Irish Bank Resolution Corporation (IBRC), home to the remnants of Anglo Irish Bank and Irish Nationwide Building Society, handed over €250 million of surplus cash to the Exchequer last week, bringing total distributions in recent years to €360 million. The disclosures were made by Minister for Finance Paschal Donohoe on Tuesday as he published the 11th annual progress update on the liquidation of IBRC. It comes as legislation is going through the Oireachtas aimed at rolling IBRC into the National Asset Management Agency, before the combined entity is ultimately wound up and its remaining assets are transferred to a new resolution unit within the National Treasury Management Agency. The €360 million has been paid in respect of ordinary shares the Government holds in IBRC following the crisis-era nationalisation of Anglo Irish Bank and Irish Nationwide. READ MORE '1 in 5 US households consume Kerrygold' – Ornua CEO Conor Galvin Listen | 33:47 It is in addition to €1.7 billion received since IBRC was put into liquidation in 2013. These relate to State debt claims, driven by a government guarantee scheme being tapped as part of the liquidation. The progress update said that 'further distributions will be made as the remaining assets are realised'. 'At inception, the IBRC loan portfolio had a par value of €21 billion. At the end of January 2025, that value stood at €3.1 billion, representing a significant reduction in the overall loan portfolio,' said Mr Donohoe. 'I want to take this opportunity to formally acknowledge the exceptional progress made by the special liquidators of the IBRC in maximising the return on IBRC's portfolio to date.' IBRC's liquidators are also in the process of selling most of the assets left on the company's books - including several properties that once belonged to businessman Seán Quinn's family. However, it faces difficulties selling Ukrainian and Russian assets due to the war between the countries. The latest report indicated fees incurred in the liquidation in the 25 months to the end of January were €8.6 million, bringing fees incurred since the beginning of the liquidation in February 2013 to €319.4 million.
Irish Examiner
22-04-2025
- Business
- Irish Examiner
Loan portfolio of Irish Bank Resolution Corporation falls to just over €3bn, says finance minister
The loan portfolio of the Irish Bank Resolution Corporation (IBRC) has fallen to €3bn as of January 2025, down from a par value of €21bn at its inception, finance minister Paschal Donohoe has announced. The eleventh Progress Update Report on the Special Liquidation of the Irish Bank Resolution Corporation (IBRC) was submitted to the finance minister by the Special Liquidators of IBRC, Mr Eamonn Richardson and Mr Kieran Wallace and provides an update on the liquidation progress, as well as information and updates in relation to ongoing workstreams and associated costs. Commenting on the report, Minister Donohoe said: 'This report emphasises the significant progress made by the Special Liquidators in 2023 and 2024 as they enter into the final months of the IBRC Special Liquidation. "The Special Liquidators continue their effective management of the wind-down process, including the liquidation of the remaining loan book and management of ongoing litigation, with a number of assets disposed of in the period. All assets are now contracted for sale, a number of which have closed in recent weeks, with the remainder scheduled to close in the coming months. "Significant preparatory work is underway to enable the transfer of any residual activity associated with the IBRC SL to the National Treasury Management Agency (NTMA), subject to the enactment of the Conclusion of IBRC Special Liquidation and Dissolution of NAMA Bill. As announced previously, a resolution unit will be established within the NTMA to manage any residual activity associated with the IBRC liquidation. This includes litigation and any residual debtor or asset management activity required. The resolution unit will also have responsibility for managing any residual activity following the dissolution of the NAMA. The residual activity of the IBRC liquidation will be transferred directly to the NTMA resolution unit following the enactment of the relevant legislation, rather than through NAMA as originally envisioned. Mr Donohoe said this approach recognises the likely legislative enactment timelines while preserving the original policy intention. "At inception, the IBRC loan portfolio had a par value of €21bn," The finance minister continued. "At the end of January 2025, that value stood at €3.1bn, representing a significant reduction in the overall loan portfolio. I want to take this opportunity to formally acknowledge the exceptional progress made by the Special Liquidators of the IBRC in maximising the return on IBRC's portfolio to date. "In the period covered by the report, €110m has been distributed to the Exchequer. I am also pleased to confirm that the IBRC Special Liquidators have completed an additional €250m transfer on Thursday, April 17, 2025. "Further realisations are to come as the Special Liquidation draws to a close. I am confident that the completion of the liquidation will be conducted in a manner that maximises the ultimate return for the State.'
