Irish Nationwide managers face probe

The Central Bank has for the first time used special powers to launch an inquiry into the former Irish Nationwide and a number of unnamed managers connected with the former building society which could result in the regulator levying personal fines of up to €500,000.

Irish Nationwide was led by Michael Fingleton until its collapse and nationalisation at a cost to the State of €5.4bn at the height of the banking crisis. With Anglo Irish, it was folded into Irish Bank Resolution Corp, which is now in liquidation.

The Central Bank refuses to name the individuals, but says that there a number of people facing allegations that they committed “prescribed contraventions” while working as managers at Irish Nationwide. It is unclear if the individuals are covered by personal indemnity insurances.

It is the first time the regulator has used long-standing powers to refer Irish Nationwide to what it calls an administrative sanctions procedure inquiry. It has yet to decide if the inquiry will be held in secret or in public.

Following increases in 2013, the bank can impose fines on a corporate body of up to €10m, or 10% of turnover, and levy up to €1m in penalties on individuals.

However, sanctions of up to €5m for the corporate, and up to €500,000 for individuals could apply in this inquiry because Irish Nationwide was stripped of its banking license four years ago.

The inquiry will comprise a panel of solicitor Marian Shanley, barrister and accountant Ciara McGoldrick and Geoffrey McEnery, former chief executive at LloydsTSB Asia and ex-board director at Hill Samuel Bank.