Members of Newbridge Credit Union were left shocked last Friday evening in the wake of the Central Bank’s decision to appoint a special manager with immediate effect.
Business was more brisk than normal on Saturday as members descended on the credit union despite the regulator’s assurance that savings were not in jeopardy. It was the first time the regulators used new legislation under the Central Bank and Credit Institutions Act 2011 to take control of a credit union.
The Central Bank got a High Court order to appoint Luke Charleton of Ernst and Young to take over from the current Board of Directors.
However Mr Charleton, whose in-depth interview with the Leinster Leader appears inside, insisted that is business as usual.
The failure of the current Board of Directors to set aside an adequate reserve fund was the catalyst behind the unprecedented move but the regulator has insisted this action is aimed at protecting the accounts of its 37,000 plus members.