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INBS under Michael Fingleton acted like a merchant bank, High Court hears

Summary

In a High Court hearing, state‑appointed director Rory O'Farrell argued that Irish Nationwide Building Society (INBS) operated like a merchant bank under former chief executive Michael Fingleton Sr., taking "very strong lending positions" on speculative property projects in the UK and France between 2006 and 2009. O'Farrell said these loans were unusual given the 2007 pledge to be risk‑averse amid a looming financial crisis, and that Fingleton allegedly approved them without board or credit committee approval, with no securities or personal guarantees. The civil case, brought by liquidators of the Irish Banking Resolution Corporation, seeks €290 million in damages relating to five specific loans, while total losses at INBS were estimated at €6 billion. Fingleton, aged 87 and unable to testify due to ill‑health, denies negligent mismanagement. The case remains ongoing in the High Court.

Who, what, where, when and why

What: Report matter: INBS under Michael Fingleton acted like a merchant bank, High Court hears. Procedural stage: hearing_or_decision

When:

• 2006 and 2009 Other
• 2025-05-20 Publication

Why: He said that the society may have felt that it was a "gun to your head situation" in paying the French tax bill upon Mr Dennis' request in order to avoid being "badly exposed". CNI source report

Places mentioned

Topics

Stage Hearing Or Decision

Read the original CNI report