Now I'm not saying that 20m is enough to sink it but... if they're not doing proper loan risk assessment at all might there be more problems there?Irish Times
Irish Nationwide chief executive Michael Fingleton directly approved the loan of 4.1 million to solicitor Michael Lynn for the purchase of a property in Howth, a court heard yesterday. Dominic Coyle reports.
In an affidavit, head of home loans at the building society, Brian Fitzgibbon, also said Mr Fingleton was personally responsible for bypassing the financial institution's own procedures.
Mr Fitzgibbon said a credit committee set up by the Irish Nationwide Building Society to approve home loans over 1 million was merely "a device" to satisfy the Irish Financial Services Regulatory Authority and, in practice, there was "limited compliance" with the rules of the society.
Loans were "entirely informal and controlled by Michael Fingleton", he said.
Mr Byrne owes the building society 10.5 million; Mr Lynn owes it more than 10 million.
As we've seen with the Gasworks it's quite possible that some developers are in negative equity situations & Irish Nationwide is looking shaky.
Also the Irish Financial Services Regulatory Authority's audits are a disgrace. When they do an audit:
1) They bring their rules in with them
2) Read the polcies in the bank
3) Ask for summary reports
And compare all 3!!
They never actually dig down onto the source systems and if they do anything like sampling it is always from a "supplied list". They don't have many staff with banking experience, they don't have any IT staff that I've ever seen...
I wouldn't be confident now.