ENTERPRISE Minister Arlene Foster claims that bank managers targeted customers in the Presbyterian Mutual Society, urging them to remove all their money from the society.
The minister was speaking after a meeting with Presbyterian Moderator Dr Donald Patton and other senior Church figures where they discussed the crisis in the Presbyterian Mutual Society.
CLICK HERE TO PETITION GORDON BROWN OVER THE PMS CRISISMrs Foster described the meeting as "constructive" and pledged the support of her department in lobbying the Prime Minister to ensure that the savings of customers are guaranteed, just as those of bank customers have been.
She said: "The crisis facing the Presbyterian Mutual Society was brought about as a direct consequence of the decisions taken by the Government.
"When the chancellor guaranteed the customer savings of Financial Services Authority-regulated institutions like Northern Rock it placed a strain on the mutual society with many customers engaging in panic withdrawals of money.
"Indeed over recent weeks I have heard numerous stories about how bank managers who knew that their customers had money in the mutual society contacted them directly urging them to withdraw their money and put it into the banks instead.
"The result was that the society was brought to the brink of collapse."
She said she had already moved to try and safeguard the savings of PMS customers while a solution to the crisis was sought.
"The devolved Executive has not been slow to act on this matter. Following an approach made by the directors of the PMS in November, I made an order under insolvency legislation to give the mutual society the option of going into administration.
"This procedure prevented an immediate sale of assets belonging to the society and provided an opportunity for an administrator to manage the affairs of the PMS with a view to safeguarding its assets and funds and preserving the interests of its members."
Mrs Foster said there was little more the local administration could do but put pressure on central Government, and she would be doing that over coming weeks.
It is understood that claims that the banks had urged PMS shareholders to withdraw funds were put to banking representatives in a recent Finance Committee meeting in Stormont. The banks said they had heard no such thing and would not condone such behaviour.
All political parties in Belfast City Council have backed a unanimous resolution calling on Gordon Brown to guarantee funds in the PMS. The resolution is a UUP-sponsored campaign across all district councils which has already been passed at Castlereagh, North Down and Lisburn.
A petition on the Prime Minister's website calling for him to guarantee PMS funds had almost 5,300 signatures.
