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put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn.[2] Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let sector.[3] The loss of funds was attributed to the fact that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

  1. ↑ Presbyterians to lose millions as Mutual collapses, The Belfast Telegraph, 14 January 2009
  2. ↑ Presbyterian Mutual Society collapses Archived 2009-01-19 at the Wayback Machine., 15 January 2009, RTÉ
  3. ↑ Some good can come out of Presbyterian Mutual collapse Archived 2011-07-18 at the Wayback Machine., co-operative News, March 19 2009
  4. ↑ Investors request meeting over Presbyterian Mutual Society funds, Mid Ulster Mail, 22 January 2009
  5. ↑ "Archived copy". Archived from the original on 2009-10-15. Retrieved 2010-01-22. , HM Treasury
  6. ↑ "Talks over Presbyterian Mutual Society". RTÉ. Friday, 12 February 2010.
  7. ↑ £200m pledged for collapsed N Irish mutual
  8. ↑ https://www.bbc.co.uk/news/uk-northern-ireland-14368955


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