Former Nationwide chief Michael Fingleton dies aged 88

Michael Fingleton, the former chief executive of Irish Nationwide Building Society, has passed away at the age of 88. He was a central figure during the financial crisis over a decade ago. Fingleton led the building society for nearly four decades before retiring in 2009, a year after the State guaranteed the liabilities of the main lenders.

The institution was later taken over by the State, costing the exchequer €5.4bn to deal with the consequences of its bad loans. Born in Tubbercurry, Co Sligo in 1938, Fingleton initially considered becoming a priest before studying for a B Comm at UCD. He later worked for Allied Irish Finance, the Dairy Disposal Board, and Concern before joining Irish Nationwide Building Society in 1971.

Known for his gregarious personality and clinical approach to lending, Fingleton expanded the society's activities into commercial lending, particularly property, during the Celtic Tiger property boom. However, his lending practices and corporate governance were later found to be questionable, with loans sometimes being advanced without security or proper documentation.

Despite the controversy, Fingleton's approach proved very profitable for the building society and personally, as he earned over €8.5m in remuneration between 2005 and 2008. However, the lender's excessive exposure to commercial property loans proved terminal, and when the financial crisis hit in 2008, the society was covered under the Government’s €400bn blanket bank guarantee and eventually nationalised in 2010.

Fingleton appeared before the Oireachtas banking inquiry in 2015, expressing regret for the taxpayer's burden but defending his decisions during his tenure.