B
birthday
In two interviews last week Brian Lenihan expresssed his desire to see AIB restored to its former 'greatness'
Given its troubled history it is jard to understand what he could have meant by this. Perhaps he will explain in his next interview or maybe one of our well-paid journalists might ask him.
1) Insurance Corporation of Ireland:
a wholly owned subsidiary of AIB when it collapsed in 1985 with losses of over £200 million and ultimately cost the Irish taxpayer £400 million.
2) John Rusnak:
John Rusnak , currency trader at Allfirst racked up losses of almost $700,000,000. Fortunately the Irish taxpayer was not hit but many recall AIB's Buckley making light of the whole affair
3) Tax evasion:
A 90 million settlement that AIB reached with the Revenue Commissioners in respect of Deposit Interest Retention Tax evasion in 2000 was the highest tax settlement in the history of Ireland.
The Revenue Commissioners on 28 March 2006 imposed a tax settlement plus penalties on four former senior executives for their interest, while employed by AIB, arising from investments they maintained in Faldor Limited.
4)Overcharging:
In 2004 it was revealed that the bank had been overcharging on foreign exchange transactions for up to ten years.
The Irish Financial Services Regulatory Authority published a report into an investigation of AIB Group concerning overcharging its own customers for FX transactions and deal allocation and other associated issues. This revealed excess charges of 34.2 million, including interest. AIB failed to comply with the law for a period of almost 8 years and that certain staff and management were fully aware of this at the time.
The final cost from overcharging amounted to 65 million and that this included a donation of 20.6 million on behalf of its customers to an unspecified charity that it was unable to identify. No employee or officer of the banks was disciplined.
Other charging issues also have been documented.
5)Charles Haughey and the Moriarty Tribunal
6)Recent developments
2008 share price collapse followed several years of insane lending in the Irish and overseas property leading to the current multi-billion cost to the taxpayer following nationalisation.
The future:
It seems obvious that the small pool of Ireland's director class do not offer safe pairs of hands to manage and direct organisations of 'systemic' importance. This has been well proven. This originates from multiple links between the gene pool from which they emanate - private schools, rugby clubs and golf clubs etc.
The government must now insist that the current Board is replaced with more worthy candidates with International experience of running banks and corporate governance.
One thing is required-along with appropriate experience, only non-Irish candidates should be appointed.
Given its troubled history it is jard to understand what he could have meant by this. Perhaps he will explain in his next interview or maybe one of our well-paid journalists might ask him.
1) Insurance Corporation of Ireland:
a wholly owned subsidiary of AIB when it collapsed in 1985 with losses of over £200 million and ultimately cost the Irish taxpayer £400 million.
2) John Rusnak:
John Rusnak , currency trader at Allfirst racked up losses of almost $700,000,000. Fortunately the Irish taxpayer was not hit but many recall AIB's Buckley making light of the whole affair
3) Tax evasion:
A 90 million settlement that AIB reached with the Revenue Commissioners in respect of Deposit Interest Retention Tax evasion in 2000 was the highest tax settlement in the history of Ireland.
The Revenue Commissioners on 28 March 2006 imposed a tax settlement plus penalties on four former senior executives for their interest, while employed by AIB, arising from investments they maintained in Faldor Limited.
4)Overcharging:
In 2004 it was revealed that the bank had been overcharging on foreign exchange transactions for up to ten years.
The Irish Financial Services Regulatory Authority published a report into an investigation of AIB Group concerning overcharging its own customers for FX transactions and deal allocation and other associated issues. This revealed excess charges of 34.2 million, including interest. AIB failed to comply with the law for a period of almost 8 years and that certain staff and management were fully aware of this at the time.
The final cost from overcharging amounted to 65 million and that this included a donation of 20.6 million on behalf of its customers to an unspecified charity that it was unable to identify. No employee or officer of the banks was disciplined.
Other charging issues also have been documented.
5)Charles Haughey and the Moriarty Tribunal
6)Recent developments
2008 share price collapse followed several years of insane lending in the Irish and overseas property leading to the current multi-billion cost to the taxpayer following nationalisation.
The future:
It seems obvious that the small pool of Ireland's director class do not offer safe pairs of hands to manage and direct organisations of 'systemic' importance. This has been well proven. This originates from multiple links between the gene pool from which they emanate - private schools, rugby clubs and golf clubs etc.
The government must now insist that the current Board is replaced with more worthy candidates with International experience of running banks and corporate governance.
One thing is required-along with appropriate experience, only non-Irish candidates should be appointed.
