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put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn.[2] Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let sector.[3] The loss of funds was attributed to the fact that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.
As of 2021, the Society's administrators (supervisors) declared that they would be unable to secure full repayment of the 175 million pounds due, and so investors with outstanding monies due would not receive them back. All savers who invested less than £20,000 have been more or less fully compensated but those with higher amounts were left with deficits of 15 to 23%.[9]
References
[edit]- ^ Presbyterians to lose millions as Mutual collapses, The Belfast Telegraph, 14 January 2009
- ^ "Presbyterian Mutual Society collapses". RTÉ. 15 January 2009. Archived from the original on 19 January 2009.
- ^ Some good can come out of Presbyterian Mutual collapse Archived 2011-07-18 at the Wayback Machine, co-operative News, March 19, 2009
- ^ Investors request meeting over Presbyterian Mutual Society funds, Mid Ulster Mail, 22 January 2009
- ^ "Presbyterian Mutual Society working group - HM Treasury". Archived from the original on 15 October 2009. Retrieved 22 January 2010., HM Treasury
- ^ "Talks over Presbyterian Mutual Society". RTÉ. Friday, 12 February 2010.
- ^ "£200m pledged for collapsed N Irish mutual". Financial Times. 20 October 2010. Retrieved 22 August 2023.
- ^ "PMS investors get cheques in post". BBC News. 2 August 2011.
- ^ "Presbyterian Mutual Society: Savers face new financial blow". BBC News. 4 April 2021. Retrieved 9 July 2022.
External links
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