Newbridge Credit Union Bailed Out

bear1 · 11-11-2013 01:20PM #1

So PTSB get's 54 million before it has even taken over the CU whilst again us taxpayers need to fork out the money.
I was seriously of the idea that the Credit Union's accounts were audited every year but hey ho doesn't matter as we will pay no problem.

http://www.independent.ie/irish-news/newbridge-credit-union-in-54m-bailout-29743289.html

the groutch · 11-11-2013 02:11PM

fat load of use that €423 per hour "special manager" was.

Grimreaper666 · 11-11-2013 02:13PM

.............and for everything else, there's the Irish tax payer......

SEPT 23 1989 · 11-11-2013 02:13PM

capitalism

bear1 · 11-11-2013 02:17PM

There was a thread recently on if we learnt anything from our time under the troika.... I'd answer a simple NO to that.

kupus · 11-11-2013 02:47PM

Whats there to learn. Only that average joe is shafted yet again

hansfrei · 11-11-2013 02:48PM

€54m to be spent on what? An empty building? Some bad debts?

That Noonan is up to his old tricks.

ebbsy · 11-11-2013 02:49PM

Its like a dog with 2 legs.

kneemos · 11-11-2013 02:59PM

I can't think of any metaphors or cliches so I can't comment.

bear1 · 11-11-2013 03:21PM

Not so much a metaphor or clichee but how about "****ing useless?"

kneemos · 11-11-2013 04:32PM

Cu's were never intended for multi million Euro property deals.They're mostly run by amateurs afaik.

zl1whqvjs75cdy · 11-11-2013 04:34PM

Well the crowd running this were certainly professional clowns. ****ing joke. Heard on the radio this morning the old chestnut that if the credit union falls others will fall and then the banks will fall and then it'll basically be mad max. Such total bollox.

Amirani · 11-11-2013 04:36PM

donkeyoaty0099 wrote: »

Well the crowd running this were certainly professional clowns. ****ing joke. Heard on the radio this morning the old chestnut that if the credit union falls others will fall and then the banks will fall and then it'll basically be mad max. Such total bollox.

Why bollocks?

Tiddlypeeps · 11-11-2013 04:37PM

Almost didn't believe if when I heard it on the radio this morning.

I honestly can't see the problem with letting a ****ty little SME (and that's pretty much all it is) in the middle of f*ck nowhere fail. Doesn't make sense to me.

Leslie91 · 11-11-2013 04:40PM

kneemos wrote: »

Cu's were never intended for multi million Euro property deals.They're mostly run by amateurs afaik.

Unlike the banks of course.....

(which were/are? run by the greediest shower of w£"$%^s in the history or Ireland)

(apart from the politicians)

zl1whqvjs75cdy · 11-11-2013 04:42PM

54 million is a tiny sum relative to the overall size of the Irish banking system. Now there might have been other reasons to save it, keeping faith of the public in the credit union movement being one of them. I do think credit unions play a very important part in the overall structure of the Irish credit system. The deposits of Joe Bloggs are still guarenteed by the government so they would have been ok (I think average savings in NBCU were ~4200) so who exactly is benefiting from this bail out. It has also set a precedent now that any credit union which is struggling can be bailed out, how much could that amount to? And how much misery will that lump on the taxpayer? Where exactly is this 54 million going to come from?

Perhaps my above post was a bit aggressive, but this piss poor management of financial institutions infuriates me.

bear1 · 11-11-2013 04:57PM

The Troika have only just left last week and already another institution has been bailed out. Boils my blood this complete and utter crap!

Tiddlypeeps · 11-11-2013 04:58PM

donkeyoaty0099 wrote: »

54 million is a tiny sum relative to the overall size of the Irish banking system. Now there might have been other reasons to save it, keeping faith of the public in the credit union movement being one of them. I do think credit unions play a very important part in the overall structure of the Irish credit system. The deposits of Joe Bloggs are still guarenteed by the government so they would have been ok (I think average savings in NBCU were ~4200) so who exactly is benefiting from this bail out. It has also set a precedent now that any credit union which is struggling can be bailed out, how much could that amount to? And how much misery will that lump on the taxpayer? Where exactly is this 54 million going to come from?

Perhaps my above post was a bit aggressive, but this piss poor management of financial institutions infuriates me.

Why play it safe when you have everything to gain an nothing to lose. The continued bailing out of Irish financial institutions is only going to reinforce that mentality.

MadsL · 11-11-2013 05:27PM

Newbridge Credit Union.

Too big to fail, sure you have to bail it out, not to do so would cause systemic banking credit union failure.

I await the next in line Credit Union (and there are plenty) to get a handout bailout.

If you want some scary bedtime reading...

4.5.6 The Commission recommends that the stabilisation actions carried out
by the Central Bank will include, among other things, such actions as:
· The provision of technical and financial advice;
· Mandatory changes to governance structures of the credit union;
· Changes to the business, operations, systems and processes
within the credit union;
· Capitalisation of the credit union.

http://www.rte.ie/news/2011/1014/creditunionreport.pdf

It is amazing how certain types of businesses in Ireland don't appear to have to follow the same fate as thousands of privately owned ones.

Anyone · 11-11-2013 05:31PM

MadsL wrote: »

Newbridge Credit Union.

Too big to fail, sure you have to bail it out, not to do so would cause systemic banking credit union failure.

I await the next in line Credit Union (and there are plenty) to get a handout bailout.

If you want some scary bedtime reading...

http://www.rte.ie/news/2011/1014/creditunionreport.pdf

It is amazing how certain types of businesses in Ireland don't appear to have to follow the same fate as thousands of privately owned ones.

Credit Unions are privately owned business's.

peppa 1986 · 11-11-2013 05:32PM

Is somebody's head going to roll for the way this credit union was run. Surely somebody needs to be accountable...giving out development loans is and never was the role of the credit union. Why was the credit union allowed to do this...accountability..audit roles...regulation..why was this allowed to happen

MadsL · 11-11-2013 05:33PM

Anyone wrote: »

Credit Unions are privately owned business's.

I didn't mean to imply they were not.

But fine. Let them go bust then like thousands of other businesses.

11-11-2013 05:33PM

Anyone going to be fired over this fiasco? Oh wait, this is Ireland.

MadsL · 11-11-2013 05:37PM

peppa 1986 wrote: »

Is somebody's head going to roll for the way this credit union was run. Surely somebody needs to be accountable...giving out development loans is and never was the role of the credit union. Why was the credit union allowed to do this...accountability..audit roles...regulation..why was this allowed to happen

You should meet some of the people on the boards of Credit Unions. I had quite a few professional dealings with Credit union staff and board members - whilst some are highly professional - top 20% or so. Some are staffed with biddies and antiquated IT systems if not books. The boards are like something you would find running a small towns GAA club.

Many Credit Unions simply do not have the business skills to deal with what has happened in Ireland, and adapt. Even the banks couldn't adapt to changing markets fast enough, some credit unions are having problems just adapting to 21st century banking.

MadsL · 11-11-2013 05:39PM

Rojomcdojo wrote: »

Anyone going to be fired over this fiasco? Oh wait, this is Ireland.

You mean fire the volunteers? How do you do that?

11-11-2013 05:46PM

MadsL wrote: »

You mean fire the volunteers? How do you do that?

What? I think you're confused.

Raging_Ninja · 11-11-2013 05:48PM

Like it ornot credit unions are not like other businesses.

If a shop goes bust, ghe people who work there lode their jobs and creditots may not get paid back. However thats where it ends.

If a credut union goes down, hundreds of people lose their life savings.

If the govt didn't step in to guarantee the deposits, there would have been a run on it. Then other people would look st their credit unions and worry that their savings weren't safe. People would withdraw their savings.

It wouldn't need to be everyone with a deposit, and wouldn't need to be most. But eventually someboy would be told that they can't withdraw their savings because the CU doesn't have ghe cash in hand. And the instant that happens and is reported, that is when you have a crisis.

You can rubbish the idea all you want, but that is how the banks collapsed in the wall street crash.

MadsL · 11-11-2013 05:49PM

Rojomcdojo wrote: »

What? I think you're confused.

Many credit unions have volunteer boards.

MadsL · 11-11-2013 05:50PM

Raging_Ninja wrote: »

Like it ornot credit unions are not like other businesses.

If a shop goes bust, ghe people who work there lode their jobs and creditots may not get paid back. However thats where it ends.

If a credut union goes down, hundreds of people lose their life savings.

If the govt didn't step in to guarantee the deposits, there would have been a run on it. Then other people would look st their credit unions and worry that their savings weren't safe. People would withdraw their savings.

It wouldn't need to be everyone with a deposit, and wouldn't need to be most. But eventually someboy would be told that they can't withdraw their savings because the CU doesn't have ghe cash in hand. And the instant that happens and is reported, that is when you have a crisis.

You can rubbish the idea all you want, but that is how the banks collapsed in the wall street crash.

Or maybe people should check the financials of any institution before trusting their money to it. Just a thought.

Raging_Ninja · 11-11-2013 05:53PM

MadsL wrote: »

Or maybe people should check the financials of any institution before trusting their money to it. Just a thought.

Most people wouldn't, and even if they did a lot wouldn't understand it.

MadsL · 11-11-2013 05:55PM

Raging_Ninja wrote: »

Most people wouldn't, and even if they did a lot wouldn't understand it.

If only there were something like, I dunno, a financial regulator or something to do it for you...

Newbridge Credit Union Bailed Out

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