Brendan Burgess
Founder
- Messages
- 52,118
A process involving the examination of possible credit union combinations was undertaken, which resulted in an approach being made to a number of credit unions including Naas Credit Union. In April 2013, Naas Credit Union submitted a proposal to the Central Bank. The proposal set out the basis upon which Naas Credit Union would be prepared to combine with Newbridge Credit Union.
Now.....did any Board in any financial institution in Ireland predict the collapse of the economy here? If not, why arent they being marched out?
Unless Naas CU is so large, that it can absorb the losses in Newbridge.
I expect the members of both CUs will be asked to vote, so members of Naas should press for opportunity to see clear documentation prior to being asked to vote on such an issue and in the absence of satisfactory evidence, vote against any proposal in my personal view.
If people in Newbridge have shares in the credit union and are not happy being a member of Naas, they could form a new credit union in Newbridge.
The Department of Finance will have to fund a significant capital shortfall in Newbridge Credit Union to support its takeover by neighbouring Naas Credit Union, The Sunday Business Post has learned.
The shortfall, which will be plugged from the Department's €500 million credit union resolution scheme, could run into the tens of millions due to what one Central Bank source called "severe and persistent breaches of regulations, particularly around reserves”.
In principle, non systemic companies should be let fail.
They and their members should pay the price now in terms of wind-ups and lost shares.
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