Presbyterian Mutual

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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put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn.[2] Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let sector.[3] The loss of funds was attributed to the fact that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 , 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". RTÉ. 15 January 2009. Archived from the original on 2009-01-19.
  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.{{cite web}}: CS1 maint: archived copy as title (link), HM Treasury
  6. ^ "Talks over Presbyterian Mutual Society". RTÉ. Friday, 12 February 2010.
  7. ^ "Subscribe to read". Financial Times. {{cite web}}: Cite uses generic title (help)
  8. ^ "PMS investors get cheques in post". BBC News. 2 August 2011 – via www.bbc.co.uk.

External links[]


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