Six law firms on shortlist to carry out lending probe
Published 18/06/2010 | 05:00
SIX Dublin law firms have been shortlisted to undertake an investigation on behalf of the Financial Regulator into lending practices at one of Ireland's covered institutions.
The Irish Independent has learned that a mini tender was sent to solicitors William Fry, A&L Goodbody, Eversheds O'Donnell Sweeney and Beauchamps last week
McCann Fitzgerald, which is representing Anglo Irish Bank in several legal actions including an investigation by the Director of Corporate Enforcement and its litigation with former chief executive David Drumm, has also been invited to tender along with business law firm Mason Hayes+Curran.
The six firms were appointed following an open tender earlier this year. Last night Irish Nationwide denied it was the bank linked to the probe.
The devastating extent of Irish Nationwide's lending practices was laid bare by its new management team last April when the lender's annual results revealed losses of almost €2.5bn for last year.
The results also revealed how some developers were given 120pc of the value of the property or land they were buying.
The building society invested members' money in a large number of property joint ventures and a number of developers received loans without giving personal guarantees. Loans worth €3.65bn were given to just 30 developers.
The bank's new chief executive Gerry McGinn said what had happened was "an outrage".