Presbyterian Mutual
The Presbyterian Mutual Society, also known as Presbyterian Mutual is a Belfast-based mutual society with around 9.500 investors, most of whom are members of the Presbyterian Church in Ireland. [1]
The society has been put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn.[2] Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let sector.[3] The loss of funds was attributed to the fact that commercial banks had their deposits guaranteed, in contrast to the Mutual's unguaranteed status.[4] The then Minister for Employment and Learning, Sir Reg (now Lord) Empey, amongst others, called for the Treasury to compensate investors. The Treasury subsequently set up a Working Group to consider what action could be taken.[5]
Gordon Brown talked with Northern Ireland's political leaders on its future on February 12, 2010.[6]
In October 2010 George Osborne announced a £200 million payment to compensate savers as part of the Comprehensive Spending Review.[7] The final bill came to £232 million, and the first cheques for repayment were sent on 2 August 2011.[8] Around 10,000 people were affected by the collapse. All savers who invested less than £20,000 have been completely recompensated.
References
- ↑ Presbyterians to lose millions as Mutual collapses, The Belfast Telegraph, 14 January 2009
- ↑ Presbyterian Mutual Society collapses, 15 January 2009, RTÉ
- ↑ Some good can come out of Presbyterian Mutual collapse, co-operative News, March 19 2009
- ↑ Investors request meeting over Presbyterian Mutual Society funds, Mid Ulster Mail, 22 January 2009
- ↑ , HM Treasury
- ↑ "Talks over Presbyterian Mutual Society". RTÉ. Friday, 12 February 2010.
- ↑ £200m pledged for collapsed N Irish mutual
- ↑ http://www.bbc.co.uk/news/uk-northern-ireland-14368955