Loans issued by Irish Nationwide in face of financial crash were 'hard to justify', High Court hears

The court heard INBS no longer held a banking licence and that its only activity was in resolving various claims

The old Irish Nationwide Building Society branch in Douglas, Cork. The lender was a high-profile casualty of the financial crisis of 2008. File picture: Denis Minihane.

Failed lender Irish Nationwide Building Society (INBS) was operating akin to a merchant bank when taking "very strong lending positions on speculative proposals", a State-appointed director has told the High Court case against former bank chief Michael Fingleton Sr.

State appointed chartered accountant Rory O'Ferrall on Tuesday told the High Court that a series of multi-million euro loans were "very unusual" in the face of an economic crash and were "hard to justify" given Mr Fingleton pledged in 2007 to the society's board that the lender should be "risk averse" in the face of the financial climate.