Tralee credit union-not struck by Northern Rock crisis
The local financial institution, which celebrated its 40th anniversary this week, had in excess of ?5 million on deposit with Northern Rock, which was controversially nationalised by the British government on Sunday, prompting an angry response from shareholders who stand to lose millions in investments.
TCU?s investment with Northern Rock matured last year and all of its principal investment and interest owed has been paid to the credit union. The money has since been invested with a number of other financial institutions in Ireland.
Management at Tralee Credit Union moved to calm investors? fears after it was claimed that the union had more than ?5 million invested with troubled British bank last September.
Management confirmed that money had been invested with Northern Rock but were adamant that the investment had been secure and there was no risk to local members? savings.Our investment with Northern Rock had a letter of comfort that the investment is covered by the guarantee from HM Treasury and the Central Bank of England. In fact, once the problems began and the British government stepped in it actually became our most secure investment,? said Fintan Ryan of TCU.Our investment matured and we have gotten back all of our principal investment and all the interest we were owed. We no longer have any involvement whatsoever with Northern Rock. There was never any risk to our members? money and we are happy there is now some closure to the whole matter,? he added.
On September 13 of last year, Northern Rock asked the Bank of England for financial assistance when it encountered problems paying off outstanding loans.
The crisis saw thousands of Northern Rock customers besiege branches in a bid to withdraw money they had deposited there.
Northern Rock is not the only British bank to have called on the Bank of England for funds since the sub-prime crisis began but is the only one to have had emergency financial support from the Bank of England and HM Treasury.
