High Court hears INBS loans in face of financial crash were 'hard to justify' in case against Michael Fingleton Sr
The High Court heard testimony in a civil case brought by IBRC liquidators against former Irish Nationwide Building Society chief Michael Fingleton Sr, alleging he negligently mismanaged the society through speculative property loans during the 2008 financial crisis. €290 million in damages is being pursued over five specific loans, with the court told the lending was 'hard to justify' given Fingleton's 2007 pledge to be 'risk averse'.
- Reportednot reported
- Arrestednot reported
- Chargednot reported
- In court7 May
3 reports - Verdict
- Sentenced
Key facts
consolidated from all reports34 statements extracted from the articles
- whatINBS was providing millions in commercial loans and top-ups before board approval (irishtimes.com)
- whatA commercial client had an exposure of a quarter of a billion euro at the time of their granted loan (irishtimes.com)
- whatA borrower was approved a loan of €28 million by Fingleton months before it came before the board in January 2009 (irishtimes.com)
- whatThe €28m loan was for the purchase of two rundown hotels in the French alps (irishtimes.com)
- whatINBS had reported assets of €16 billion at its height in 2007 (irishtimes.com)
- whatTotal losses at INBS were estimated at €6 billion (irishtimes.com)
- whatOnly €290 million in damages is being pursued by IBRC relating to five specific loans (irishtimes.com)
- whatThe Ice Mountain project actually had no planning permission (irishtimes.com)
- whatThe project was hit with a bill of €565,000 by French tax authorities (irishtimes.com)
- whatNama bought the Ice Mountain loan in 2010 when it stood at around €31 million, paying just under €11 million (irishtimes.com)
- whatThe Ice Mountain loan resulted in a loss of €20 million for the taxpayer (irishtimes.com)
- whatINBS no longer holds a banking licence and is not trading (irishtimes.com)
- whenThe civil case was in its second day at the High Court (irishtimes.com)
- whenFingleton joined the building society in 1971 and retired in 2009 (irishtimes.com)
- chargeOnly €290 million in damages is being pursued, relating to five specific loans allegedly approved by Fingleton. (irishtimes.com)
- courtThe case is on its fifth version of a statement of claim. (irishtimes.com)
- courtThe plaintiffs said they will call two Central Bank witnesses. (irishtimes.com)
- courtThe case continues at the High Court. (irishtimes.com)
- otherFingleton is 87 and in ill health after a stroke (irishtimes.com)
- otherFingleton ran INBS from 1971 to 2009 as managing director and chief executive (irishtimes.com)
- otherAt its height in 2007, INBS had reported assets of €16 billion (irishtimes.com)
- otherLosses relating to property loans were estimated by IBRC at €6 billion (irishtimes.com)
- otherOnly €250 million in damages is now being pursued relating to five loans (irishtimes.com)
- otherNo securities were in place on the loans and no personal guarantee was sought or provided (irishtimes.com)
- otherFingleton was reported to have been worth around €75 million in 2006 (irishtimes.com)
- otherFingleton's son told the courts his father is reduced to €25,000 in two personal bank accounts (irishtimes.com)
- otherFingleton has outstanding judgment debts of more than €10.7 million (irishtimes.com)
- otherThe IBRC liquidators are pursuing the defendant for €290 million in damages. (irishtimes.com)
- otherMichael Fingleton Sr is 87 and cannot give evidence due to ill-health. (irishtimes.com)
- otherFingleton joined INBS in 1971 and retired in 2009, holding the roles of managing director and chief executive. (irishtimes.com)
- otherINBS was a high-profile casualty of the 2008 financial crisis. (irishtimes.com)
- otherTotal losses at INBS had been estimated at €6 billion. (irishtimes.com)
- otherFingleton is 87 years old and cannot give evidence due to ill-health (irishtimes.com)
- otherFingleton denies the allegation of negligent mismanagement (irishtimes.com)
The reporting
newest first- 20 May2025Loans issued by Irish Nationwide in face of financial crash were ‘hard to justify’, High Court hears
Reports testimony from state-appointed director Rory O'Ferrall and former CEO Gerry McGinn at the High Court, detailing speculative property loans including the 'Ice Mountain' hotel project in France, and the €290 million damages claim by IBRC liquidators.
accused, Michael Fingleton Sr, 87, male, named, irish (judged from name)Michael Fingleton Sr - 13 May2025Changes in claims against Fingleton put defence in ‘intolerable’ position, court told
Defence solicitor Niall Clerkin complained the case is on its fifth version of the statement of claim, that 95% of the original €6 billion claim has fallen away, that 'massive tracts' of documents are missing, and that the plaintiffs' two Central Bank witnesses could only give precluded systemic evidence. Plaintiff's counsel Lyndon MacCann SC called the suggestion of withheld documents 'scurrilous' and confirmed the five specific loans remain the focus.
suspect, Michael Fingleton Sr, 87, male, named, irish (judged from name)Michael Fingleton Sr - 7 May2025Irish Nationwide was providing millions in loans before board approval, Fingleton civil trial hears
Day two of the trial details specific loans: a €28m 'Ice Mountain' loan for French alps hotels approved before board review, a £71m loan topped up to £81m with only Fingleton's approval, and a €130m loan disputed as non-recourse. Fingleton's approval methods (phone, scribbling notes, no computer or email) and his current financial state (€25,000 in two accounts, €10.7m judgment debts) were described.
suspect, Michael Fingleton, 87, male, named, irish (judged from name)Michael Fingleton