Loans to directors of key institutions will come under scrutiny

THE Financial Regulator is to intensify its examination of directors’ loans in all of the country’s main banks following a meeting of its board over the weekend.

A special committee of the watchdog has been established to conduct “an urgent review” of how all financial institutions deal with the issue of loans to their directors, following the resignation of Seán FitzPatrick as chairman of Anglo Irish Bank last week.

Mr FitzPatrick stepped down from his top position with the bank last Thursday after it emerged he had concealed the details of a €87m loan he had taken out from the bank over an eight-year period.