IBOA concern at proposed auction of INBS deposits

Issued : 8 February 2011

IBOA The Finance Union has expressed serious concern over the decision by the Minister for Finance, Brian Lenihan, to authorise the auction of the deposits of Irish Nationwide Building Society.

"The Minister's decision runs counter to the previous expectation that the INBS deposits would be transferred to one or more other Irish institutions as part of a strategic approach to the restructuring of the banking sector in this country," said IBOA General Secretary, Larry Broderick.

"It appears now that the Minister values short-term expediency more than the long-term stability of the financial services sector in Ireland.

"Instead of using these deposits strategically to buttress the balance sheets of one or more of the Irish institutions covered by the State guarantee, the Minister is offering them for sale to the highest bidder, regardless of the consequences to our domestic banks.

"The Minister's announcement fails to shed any light on the implications of this development for the staff of Irish Nationwide - especially those working in the branch network whose daily work involves substantial interaction with depositors.

"The staff of Irish Nationwide must not be treated as collateral damage in the effort to resolve the horrendous difficulties created by the previous senior management of INBS - most of whom appear to have walked away largely unscathed from the havoc they have wrought.

"IBOA has sought urgent meetings with Irish Nationwide's Chief Executive, Gerry McGinn, and Chairman, Daniel Kitchen, as well as John Corrigan, Chief Executive of the National Treasury Management Agency, for detailed discussions on the impact of the Minister's announcement for Irish Nationwide in the context of the still unpublished joint EU restructuring plan for INBS and Anglo Irish Bank," he said.