Former banker Michael Fingleton faces a civil trial on Tuesday alleging that he negligently mismanaged the Irish Nationwide Building Society, which failed earlier this century following a financial and property crash.
Now in his late 80s, Mr Fingleton ran the finance institution for about 38 years, first with the title managing director and later as chief executive.
He took over its management in 1971, when it employed just five people, and grew it to a business with assets of some €16 billion at its height in 2007.
However, the lender was one of the worst casualties when a property investment bubble burst in 2008, sparking a financial crisis that threatened to leave the State insolvent after the then government guaranteed Irish banks’ liabilities.
Losses were estimated at €6 billion and stemmed from commercial property loans, an area of business where Irish Nationwide was very active. Mr Fingleton left in 2009.
The State-run National Asset Management Agency took over its commercial property loans in 2010. The following year, the government merged it with Anglo Irish Bank and established the Irish Bank Resolution Corporation to take over the remains of both lenders.
Mr Fingleton and other executives subsequently faced questions about their management of Irish Nationwide, particularly into whether the company followed proper procedures, or applied prudent safeguards, when approving some commercial property loans.
The central bank began a long inquiry into the running of Irish Nationwide in 2017. But it dropped any proceedings against Mr Fingleton in 2019 on the grounds of his ill-health.
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However, the liquidators of the Irish Bank Resolution Corporation are continuing to pursue the civil case that the State institution began in 2012.
The claim was originally for €6 billion, but has since been pared back to €290 million and focuses on five loans.
The former building society boss, acting through his wife Eileen Fingleton and son Michael Fingleton jnr, under their powers of attorney, attempted to halt the case through court challenges and appeals.
His lawyers argued that he could not receive a fair trial as a stroke had incapacitated him several years ago and because of the passage of time since the alleged events.
However, the Supreme Court ruled late last year that Mr Fingleton should face the civil trial. Mr Justice Séamus Woulfe said the Court of Appeal was correct in finding that Mr Fingleton’s inability to instruct his lawyers or to give evidence in court was not enough to prevent the case going ahead.
During his career, Mr Fingleton became a well-known figure in Irish business. He was reported to have been worth €75 million in 2006, when property values were then at their most inflated.
His son told the courts that the one-time finance boss now has €25,000 in two personal bank accounts and outstanding judgment debts of more than €10.7 million as of late 2022.
The civil trial is scheduled to begin on Tuesday morning in the High Court.
