IBRC sues former Irish Nationwide chief Fingleton

FORMER IRISH Nationwide chief Michael Fingleton and five other former directors of the building society are the subject of fresh legal actions taken by the former Anglo Irish Bank, which is winding down the former building society.

Two set of proceedings were filed against the six men yesterday relating to breach of contract.

The first is against Mr Fingleton and the second against former chairman Michael Walsh, former finance director and secretary Stan Purcell and board members Cornelius Power, Terence Cooney and David Brophy, according to legal papers filed in the courts.

Mike Aynsley, chief executive of Irish Bank Resolution Corporation, formerly Anglo, said the bank was issuing “protective plenary summonses” against the men and that these would “signal a potential series of actions to come”.

He named Mr Fingleton and Mr Walsh but declined to identify the others or the nature of the actions.

The actions were issued yesterday to avoid problems with the statute of limitations, he said. The statute blocks legal actions after six years in contractual disputes.

The bank’s proceedings relate to matters dating back to 2006 when the six men were directors of Irish Nationwide and centre on actions taken by Mr Fingleton and the board’s oversight of his role and management of the lender.

The proceedings follow investigations by Ernst and Young and law firm McCann Fitzgerald, whose reports were passed on to IBRC by the Central Bank and Department of Finance.

Speaking generally, Mr Aynsley said IBRC was required to pursue individuals believed to have breached regulatory and contractual obligations or fiduciary duties.

Mr Aynsley said the bank had received approval from the Minister for Finance to take the actions under the agreement between Government and IBRC.

“We just don’t charge off and do this – the Minister has now provided his approval to commence these proceedings,” he said.

The bank has pursued Mr Fingleton for the return of a €1 million bonus paid after the Government bank guarantee in 2008, an €11,500 watch received as a retirement gift and expenses charged to Irish Nationwide during his time running the building society.

IBRC reported a loss of €873 million for 2011, down from €17 billion the previous year, and that 61 per cent of its remaining loans of €29 billion were impaired.