Central Bank in damages case risk

The Central Bank could face a possible damages claim for tens of millions over its alleged approval over 12 years of the alleged unlawful delegation of the powers of the board of Irish Nationwide Building Society to its former CEO, Michael Fingleton.

The financial regulator was also informed of the alleged delegation of powers, which it is claimed led to €6bn losses at INBS, but while the regulator between 2006 and 2007 expressed wishes it be monitored and risk tolerance controls put in place, he never sought to revoke the move, the Commercial Court was told.

A “soft” reply from the regulator in 2007 concerning the delegation made clear he was “certainly not putting the boot in”, said John Rogers, for John Stanley Purcell. Mr Purcell is one of four former directors being sued by the Irish Bank Resolution Corporation (IBRC) and INBS arising from the “catastrophic losses” of €6bn at the society.