Michael Fingleton
Michael Fingleton | |
|---|---|
| Born | 1938 Tubbercurry, County Sligo, Ireland |
| Occupation | Banking executive |
| Years active | 1971–2009 |
| Known for | Chief executive officer of Irish Nationwide Building Society during the 2008–2012 Irish banking crisis |
| Notable work | Fingers: The Man Who Brought Down Irish Nationwide and Cost Us €5.4bn |
Michael Fingleton served as the chief executive officer of Irish Nationwide Building Society until his retirement in April 2009, during the period of the 2008–2012 Irish banking crisis. He began his tenure with the building society in 1971 and was widely recognized in financial circles by the nickname "Fingers." Fingleton was instrumental in steering the institution’s expansion and day-to-day management.
Early life and career
Born in 1938 in Tubbercurry, County Sligo, Fingleton was the son of a local Garda officer. His education included attendance at St Nathy's school in Ballaghaderreen, followed by studies at UCD, TCD, and Kings Inns. He briefly enrolled in a seminary but departed before taking any religious vows. During the early 1960s, while pursuing commerce studies, he worked at Allied Irish Finance and subsequently joined the Dairy Disposal Agency, where he qualified as a chartered accountant. From 1969 onwards, he became actively engaged with the aid organization Concern Worldwide, coordinating food shipments to Biafra and eventually assuming the role of chairman.
Career at Irish Nationwide
Fingleton joined the Irish Independent Building Society as secretary in 1971, at a time when the organization had only five employees and assets totaling €2 million. That year, it reported a modest profit of €12,000. Although he was called to the bar in 1973, he never practised law professionally. The building society rebranded itself as Irish Nationwide in 1975 and expanded its reach primarily through marketing efforts and agency partnerships rather than establishing branches. Under Fingleton's leadership, it grew into an extensive network comprising 50 branches and 40 agents, acquiring entities such as the Garda Building Society, Irish Mutual, and Metropolitan Building Society. During the 1980s, he introduced more adaptable mortgage schemes and developed strong connections with media outlets that generated substantial publicity.
By 2005, Fingleton’s remuneration had risen to €1.3 million annually, including a €500,000 bonus, placing him on par with chief executives of leading banks. He championed legislation allowing demutualisation starting in 2001, which was enacted in 2006. In 2007, after failed negotiations with Germany’s HypoVereinsbank and GE Money, he came close to selling Irish Nationwide to Icelandic bank Landsbanki. The proposed transaction valued assets at approximately €1.3 billion to reflect anticipated equity release; however, it collapsed amid concerns regarding commercial lending practices. Notably, Landsbanki itself collapsed nine months later.
Fingleton was characterized by an authoritative leadership style, personally sanctioning loans exceeding €500,000. His approach attracted criticism when former home loans manager Brian Fitzgibbon claimed that lending decisions were informally directed by Fingleton and that numerous loans circumvented formal credit committee review. Among these were loans over €10 million granted to rogue solicitors Micheal Lynn and Thomas Byrne. In 2007, Irish Nationwide set aside provisions for these problematic loans within a total loan loss charge of €48.8 million.
By the end of 2007, Irish Nationwide had evolved into a significant financial institution with pre-tax profits reaching €390 million for 2006 and total assets amounting to €16.1 billion. Fingleton enhanced operational performance by lowering the cost-to-income ratio from 14.4% to 10%. Additionally, that year he arranged for a €27.6 million pension fund to be transferred out of the society.
Loans to politicians and public figures
Fingleton facilitated loans not only for members of the press but also for individuals in political and public roles. In December 2009, following an interview with Olivia Greene, a former home loans supervisor at Irish Nationwide, Prime Time disclosed that ex-Minister for Finance Charlie McCreevy obtained a €1.6 million loan to purchase a €1.5 million property from Irish Nationwide, despite the institution's policy against providing 100% financing. Additionally, he authorized a loan to Celia Larkin, former partner of ex-taoiseach Bertie Ahern, without requiring proof of income. John Mara, son of the previous Fianna Fáil election director PJ Mara, secured substantial loans, including one of €1.5 million without extra collateral.
Greene also brought to light that Fianna Fáil Senators Francis O'Brien and Don Lydon were granted expedited loans amounting to €7 million and €3 million respectively.
Impact of the financial crisis and retirement
Following the 2008 economic downturn, Irish Nationwide experienced a severe decline as non-performing loans escalated. The building society posted a pretax loss of €280 million in 2008 after writing off €464 million in bad debts—a tenfold increase compared to 2007. To stabilize the institution and avert collapse, the government injected €2.7 billion under its guarantee scheme.
Approaching his seventieth birthday in 2008, Fingleton faced compulsory retirement from his directorship. Although the board contemplated extending his term by two years, they abandoned this plan after he insisted on retaining his 2007 remuneration package, which included a €1 million bonus. He ultimately stepped down in April 2009 amid controversy surrounding this bonus. At the time of his departure, Irish Nationwide relied heavily on government guarantees to access bond markets. The losses incurred in 2009, totaling €2.5 billion, erased all accumulated profits since the organization’s inception. For his final four months in office, Fingleton earned €221,000—an annualized figure exceeding the government's €500,000 cap on senior banking executives.
As the crisis worsened, calls increased for Fingleton to return the €1 million bonus. In April 2010, he proposed donating the amount to charity; however, this offer was declined by the government. By December 2010, there was no indication that the bonus had been reimbursed.
Personal and family
Michael Fingleton is married to Eileen, and the couple lives in Shankill, located in South Dublin. He has a strong passion for horse racing and regularly participates in various racing events. Together, they have four children, one of whom is Michael Fingleton Jr., who previously worked at Irish Nationwide.
See also
Further reading
- Fingers: The Man Who Brought Down Irish Nationwide and Cost Us €5.4bn (), authored by Tom Lyons and Richard Curran, published in 2013