Mr. Patrick Casey:

There were two core problems in Newbridge Credit Union. The first was the investment of members’ capital in new premises. We understand €19 million was spent, principally in the period 2005 to 2006. The second issue related to lending practices and particularly the provision of property-backed loans. There was a portfolio of special examination loans provided by Newbridge Credit Union totalling €40 million, approximately 30% of the gross loan balances of the credit union. They were non-standard bulk repayment loans which were larger than the average credit union loan. The impact of those loans and the recognition of their losses in that portfolio came to light in a report by the new auditors to Newbridge Credit Union in the latter part of 2011. That was when the financial distress occurred.