Confirmation of Dismissal and €130,000 Penalty for Ex-Irish Nationwide Finance Director Upheld
The Irish Nationwide Building Society (INBS) inquiry has come to a significant conclusion, with the High Court confirming a fine of €130,000 for its former finance director, John Stanley Purcell. The decision solidifies the penalties against Purcell for his role in regulatory breaches at INBS during the financial crisis.
The sanctions stem from a long-running inquiry by the Central Bank of Ireland (CBI) into the conduct of INBS directors. The investigation cost over €24.3m and found that Purcell, as a board member, participated in breaches of financial services law by the lender relating to its commercial lending between 2004 and 2008.
Purcell agreed to the confirmation proceeding in his absence and did not intend to appeal the inquiry findings concerning him. However, he initially suggested a fine of €100,000, but the inquiry panel decided a €130,000 fine was appropriate.
The High Court also confirmed a reprimand, a four-year disqualification from company involvement, and an order for Purcell and the bank to pay their own legal costs related to the inquiry. Purcell stated he would pay the €130,000 fine within 14 days of confirmation.
In addition to Purcell, three other INBS directors - Michael Walsh, Tom McMenamin, and Gary McCollum - reached settlement agreements with the bank and were fined a total of €243,000. However, there is no publicly available detailed information about sanctions or inquiry findings against these directors beyond Purcell.
The collapse of INBS resulted in financial losses in excess of €6 billion between 2008 and 2010, primarily due to the impairment of its commercial loan book. The case against Michael Fingleton, the former long-standing managing director of INBS, is currently being heard in the High Court by the Irish Bank Resolution Corporation (IBRC).
This decision marks a key step in holding INBS leadership accountable for their actions during the financial crisis. The confirmation of sanctions against Purcell forms part of broader accountability measures aimed at ensuring the integrity of financial institutions in Ireland.
The fine imposed on John Stanley Purcell, a former finance director at Irish Nationwide Building Society (INBS), is a part of the financial penalties stemming from the industry's regulatory breaches during the financial crisis. The sanctions, totaling €130,000, were determined by an inquiry panel following an investigation into INBS conduct by the Central Bank of Ireland (CBI).
