'No commercial issues' behind Walsh resignation

Irish Nationwide Building Society (INBS) said this afternoon that “no commercial issues” contributed to the surprise resignation of its chairman, Dr Michael Walsh last night.

INBS held a board meeting this morning at which it was agreed that vice-chairman, Terence J Cooney, would act as chairman until successor is appointed.

In a brief statement issued after the board meeting INBS said it had been informed by Dr Walsh that there “are no commercial issues which would have impacted on his decision”.

“The board understands and fully accepts that he can no longer devote the increasing amount of time required to provide the necessary oversight and leadership in the current challenging times for all financial institutions.”

INBS said it accepted his resignation with “great regret”. Dr Walsh has been a director at INBS since April 1995 and chairman since May 2001.

Mr Walsh is the fourth chairman or chief executive of an Irish lender covered by the Government’s deposit guarantee scheme to resign since the scheme was introduced.

His resignation comes as it was reported yesterday that Irish Nationwide had provided tens of millions in sterling and US dollar loans to former Anglo Irish Bank chairman Seán FitzPatrick.

The building society’s credit rating was downgraded by Moody’s two days ago and now stands one level above speculative grade or “junk” status.

Last night Minister for Finance Brian Lenihan said the appointment of a new chairman was a matter for the INBS board. The state has appointed two directors to its board under the Government guarantee legislation.

Irish Nationwide Building Society Statement

The board of Irish Nationwide Building Society accepts with great regret the resignation of Dr Michael Walsh as chairman of the board and a director of the society and thanks him for his enormous contribution as a director from April 1995 and Chairman since May 2001

Dr Walsh has informed the board that there are no commercial issues which would have impacted on his decision. The board understands and fully accepts that he can no longer devote the increasing amount of time required to provide the necessary oversight and leadership in the current challenging times for all financial institutions

The board of the society at a meeting held today agreed that the vice-chairman, Mr Terence J. Cooney would be acting chairman until such time as a successor is appointed.