Presbyterian Mutual
Encyclopedia
ThePresbyterian 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
.
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put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn. Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let
sector. The loss of funds was attributed to the fact that commercial banks had their deposits guaranteed, in contrast to the Mutual's unguaranteed status. 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.
Gordon Brown
talked with Northern Ireland's political leaders on its future on February 12, 2010.
In October 2010 George Osborne
announced a £200 million payment to compensate savers as part of the Comprehensive Spending Review. The final bill came to £232 million, and the first cheques for repayment were sent on 2 August 2011. Around 10,000 people were affected by the collapse. All savers who invested less than £20,000 have been completely recompensated.
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
based mutual society with around 9.500 investors, most of whom are members of the Presbyterian Church in Ireland
Presbyterian Church in Ireland
The Presbyterian Church in Ireland , is the largest Presbyterian denomination in Ireland, and the largest Protestant denomination in Northern Ireland...
.
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put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn. Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let
Buy to let
Buy-to-let is a British phrase referring to the purchase of a property specifically to let out. A buy to let mortgage is a mortgage specifically designed for this purpose....
sector. The loss of funds was attributed to the fact that commercial banks had their deposits guaranteed, in contrast to the Mutual's unguaranteed status. The then Minister for Employment and Learning, Sir Reg (now Lord) Empey, amongst others, called for the Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
to compensate investors. The Treasury subsequently set up a Working Group to consider what action could be taken.
Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...
talked with Northern Ireland's political leaders on its future on February 12, 2010.
In October 2010 George Osborne
George Osborne
George Gideon Oliver Osborne, MP is a British Conservative politician. He is the Chancellor of the Exchequer of the United Kingdom, a role to which he was appointed in May 2010, and has been the Member of Parliament for Tatton since 2001.Osborne is part of the old Anglo-Irish aristocracy, known in...
announced a £200 million payment to compensate savers as part of the Comprehensive Spending Review. The final bill came to £232 million, and the first cheques for repayment were sent on 2 August 2011. Around 10,000 people were affected by the collapse. All savers who invested less than £20,000 have been completely recompensated.