Presbyterian Mutual

The Presbyterian Mutual Society, also known as Presbyterian Mutual is a Belfast-based mutual society with around 9.500 investors, most of whom are members of the Presbyterian Church in Ireland. ^[1]

The society has been put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn.^[2] Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let sector.^[3] The loss of funds was attributed to the fact that commercial banks had their deposits guaranteed, in contrast to the Mutual's unguaranteed status.^[4] The then Minister for Employment and Learning, Sir Reg (now Lord) Empey, amongst others, called for the Treasury to compensate investors. The Treasury subsequently set up a Working Group to consider what action could be taken.^[5]

Gordon Brown talked with Northern Ireland's political leaders on its future on February 12, 2010.^[6]

In October 2010 George Osborne announced a £200 million payment to compensate savers as part of the Comprehensive Spending Review.^[7] The final bill came to £232 million, and the first cheques for repayment were sent on 2 August 2011.^[8] Around 10,000 people were affected by the collapse. All savers who invested less than £20,000 have been completely recompensated.

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