Irish Nationwide members have been told that the building society may need more capital on top of the €2.7 billion already committed by the State to recapitalise it.
The society's chairman told its AGM the future of the organisation involved a return to its traditional roles as a savings and loans organisation.
Danny Kitchen said that under the society's reconstruction plans - due to be submitted to the EU by June - all options available to it would be considered. But he said there would be no continuation of the sort of commercial lending which has led Irish Nationwide to what he called 'this position'. Mr Kitchen added that the losses sustained by Irish Nationwide last year were truly shocking.
Last month the building society reported a loss of almost €2.5 billion for 2009, after setting aside almost €2.8 billion for loan losses. Almost all of the loan losses were linked to commercial property lending.
In his address to shareholders Mr Kitchen formally thanked the Finance Minister and his department for their support in recent months. He said that Brian Lenihan now has effective control of the society.
Irish Nationwide's entire commercial loan book is being taken over by the National Asset Management Agency.
Asked about Michael Fingleton's €1m bonus, Mr Kitchen said the former chief executive and chairman had undertaken to give it back, but this had not yet happened.
He did not rule out court action against previous members or directors, but he said no actions were underway. He said that in forensic investigation of the society's books, one instance that was 'questionable' had turned up. He said this did not relate to senior people, and potential fraud has been reported to the Gardaí.
Speaking at today's AGM, society member Brendan Burgess said Irish Nationwide is now just 'a €2.4 billion loan book'.
He said there would be inevitable additional losses, and that the main option the society should be looking at is its gradual wind down.
Mr Burgess added it was sad that people would lose their jobs but said that Irish Nationwide has no future and no role in society.
Chairman Danny Kitchen said he did not agree that there was no room in the market for Nationwide, as the bigger players in the market would be restricted.
Irish Nationwide's CEO Gerry McGinn said that at the end of 2009 the building society employed 399 staff. They were paid €15.9m in total - an average salary of €40,000. This compares to a workforce of 385 at the end of 2008, paid a total of €18.5m.
