Central Bank to release material on takeover of Newbridge Credit Union

The

Central Bank

yesterday secured orders permitting the release of some of the material used to support its application leading to Newbridge credit union being subsumed into Permanent TSB bank for some €54 million.

Material that would disclose the private affairs of members of the credit union will not be disclosed. Some documents were released by the Central Bank last night.

The president of the High Court, Mr Justice Nicholas Kearns, made the publication orders yesterday on the application of Brian Kennedy SC, for the Central Bank, and on consent of the directors of the credit union on condition their affidavits, which are strongly critical of the bank’s intervention, are also made public.

'Ill-conceived intervention'
Ben Donnelly, chairman of the board, said in an affidavit it was "most regrettable" that the "ill-conceived intervention" had, "after two years and great cost to the members, resulted in the loss of credit union services to Newbridge, the loss of its landmark building, a loss of confidence in the wider credit union sector and a cost to the taxpayers that amounts to multiples of the regulatory deficit created by the imposition of increased provisions".

The material relates to the bank’s application almost two years ago to have a special manager appointed to the credit union, ultimately leading to the decision last month to subsume it into PTSB.

On the application of the Central Bank at a late-night High Court sitting on November 10th, Newbridge credit union was transferred to PTSB for €54 million.

In January 2012, the Central Bank had applied to the High Court for a special manager to be appointed to the credit union over alleged breach of solvency rules and after a proposed merger with Naas credit union was rejected.