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Mon 12 Dec 2008'Lax scrutiny' putting credit unions at risk

FINANCIAL SERVICES Ombudsman Joe Meade has expressed concern to the Financial Regulator that credit unions and their members are being exposed to potentially significant losses due to very lax scrutiny of risky investments.

Mr Meade is understood to have expressed his concerns after examining a complaint in which a Co Galway credit union incurred a €1 million loss when its investment in a Friends First product was wiped out due to the near collapse of specialist lender International Securities Trading Corporation.

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