Joint Liquidators appointed to Rush Credit Union

Following an application by the Central Bank of Ireland, the High Court today appointed liquidators to Rush Credit Union Limited (“Rush”).  Provisional Liquidators had previously been appointed on 2 November 2016.

The Central Bank decided to use its legal power to apply for the winding-up of Rush having given due consideration to the circumstances detailed in the Resolution Report (PDF 2.36MB) and Patrick Casey’s affidavit (PDF 2.08MB), documents which are published today in partially redacted form.

These documents detail the governance, financial and internal control failures that were identified in Rush by the Central Bank and independent third parties through various reviews, reports and inspections. These engagements resulted in recommendations for Rush to enhance its governance and internal control environment. The Board and management failed to address these very significant recurring issues and as a consequence, this led to a severely compromised financial position, and ultimately the failure of the credit union.

Since the appointment of the provisional liquidators, the Central Bank has issued compensation payments through the Deposit Guarantee Scheme to approx. 9700 members of Rush.  The total amount of compensation paid to date amounts to €22.3 million, representing 98% of deposits covered by the Scheme.  Members received their payments from 11 November 2016.

The Central Bank remains fully supportive of the credit union sector in Ireland and is committed to the continued development of a strong and sustainable sector that meets members’ changing needs and protects their savings.

Notes:

• Further information on the Deposit Guarantee Scheme is available on www.depositguarantee.ie of Credit Unions,
• Anne Marie McKiernan, recent speech can be read here Director of Credit Institutions,
• Ed Sibley, recent speech can be read here