Michael Fingleton: Irish Nationwide would have welcomed 20% house prices fall

The former boss of the Irish Nationwide Building Society has told the Banking Inquiry he took steps to downsize the institution in 2007.

Michael Fingleton arriving at Leinster House this morning. Picture: Collins.

Michael Fingleton is appearing before the banking inquiry today, where he is expected to be quizzed about a €1m bonus paid to him in 2008.

He resigned from his role in April 2009.

In his opening statement, he said the society believed there was going to be a soft landing in the property market.

"The Society accepted the market consensus that in the event of a downturn in the property market, a soft landing scenario would apply," he said.

"…It was anticipated that a fall in real property values of around 20% would occur over an extended period.

"The Society would have, at this time, welcomed such a development on the basis it was in the interests of a more stable market."