The Newbridge takeover: an isolated example?

WHETHER Newbridge Credit Union is an isolated example of a rogue institution in a relatively stable sector, or whether it is symptomatic of a much wider malaise is possibly a multi-billion euro question.

The Government and the troika will be hoping that it is the former. The markets will be looking on with keen interest. In view of the timing, the stakes are extremely high.

The Central Bank has a €250m fund in place to deal with credit union loan losses. Losses at Newbridge have already accounted for €53m of this fund.