Newbridge Credit Union taken over by Permanent TSB

Newbridge Credit Union taken over by Permanent TSB

Newbridge Credit Union is to be bailed out at a cost of nearly €54m, and has been labelled as "the Anglo Irish Bank" of credit unions.

The body has been taken over by Permanent TSB, following an emergency High Court sitting last night.

The troubled financial institution had a special manager appointed in 2012, after it ran into serious financial difficulties.

Members have withdrawn up to €20m euro in savings recently, but members are being assured that all deposits up to €100,000 per person are protected.

Financial commentator Eddie Hobbs said the credit union had been in "very serious breach" of regulations as far back as 2004, lending more than permitted under legislation.

"There is a rule under the Credit Union Act which says that because all of your deposits are available on demand, you can't lend more than 10% of your asset base out longer than 10 years.

"And at that stage, Newbridge was at about 30%. So they were the Anglo Irish Bank of the Credit Union market."

However, Chairman of the Newbridge Credit Union Action Group, Willie Crowley, claims the credit unions finances weren't mismanaged.

"We deny that a lot of the statements that have been made are … true," he said.

"There have been large loans, but there were also large deposits, you must remember. This was in the era of the Celtic boom. People had millions and millions on deposit in Newbridge credit union."

Mr Crowley also said the Action Group will be challenging the takeover of the credit union by Permanent TSB in the courts and at European level.

The Government has already set aside €1bn for cases like Newbridge, under the credit union restructuring fund.

More in this Section

UCC business students to benefit from $1m philanthropic donationUCC business students to benefit from $1m philanthropic donation

Emirates announces deal for 20 more Airbus A350 planesEmirates announces deal for 20 more Airbus A350 planes

Irish renewable energy firm acquires Mayo windfarm for €37.2mIrish renewable energy firm acquires Mayo windfarm for €37.2m

Sage Group sells payment arm to US firm Elavon for €270mSage Group sells payment arm to US firm Elavon for €270m


Lifestyle

Louis Mulcahy reads in Cork this weekend for the Winter Warmer fest, writes Colette Sheridan.Wheel turns from pottery to poetry

ACCLAIMED filmmaker Damian O’Callaghan is well used to creating cinematic magic on screen.Wedding of the Week: Filmmaker Damian meets his real-life leading lady

From age 6, I was on stage. I started with school plays but it never occurred to me that it would become my job.This much I know with writer and performer Joanne Ryan

I’m 30 and have been with my boyfriend for nearly two years.Sex Advice with Suzi Godson: I can't help him to climax...

More From The Irish Examiner