Coalition urged to spell out banks plan

THE Government has been called upon to spell out the detail of plans to replace the country’s top bankers after the coalition partners issued conflicting messages on the issue.

Earlier this week, Taoiseach and Fianna Fáil leader Brian Cowen suggested it would be for the boards of the banks themselves to decide if senior management should go.

“I have faith in the boards of these banks to do whatever is necessary now in the new situation that we find ourselves in. We will be far more hands-on in terms of having directors in there,” Mr Cowen said on Tuesday, in reference to the fact that the Government will have the power to place members on the boards under its recapitalisation scheme.

But, on Christmas Eve, Communications Minister and Green Party TD Eamon Ryan sent a clear signal that the Government would intervene more forcefully.

“The status quo cannot be allowed to continue in terms of personnel. Clear lessons have to be learned and those responsible for the current state of Irish banking will have to allow a different system and different personnel to be put in place,” he said.

The difference in tone is thought to have arisen because the Greens are anxious to be seen as giving leadership on the issue.

Three banks will be covered under the re-capitalisation scheme — AIB, Bank of Ireland and Anglo-Irish Bank. The chairman and chief executive of Anglo Irish have already departed over a loans controversy.

Fianna Fáil is confident that, once AIB and Bank of Ireland accept the Government’s recapitalisation offer, it will effectively be an admission that the banks were not well managed, leaving senior personnel with little option but to resign.

The Greens are aware of this too, but as junior coalition partners, need to be more proactive in the hope of receiving some of the credit should the banks’ top management be replaced.

But Sinn Féin said that if a clear Government plan was actually in place to force out the top bankers, Mr Ryan should spell out the details.

“When the Government announced its recapitalisation plan, there was no mention of accountability and the removal of personnel from the boards of Irish banks,” said finance spokesman Arthur Morgan.

“In fact, this issue was most noticeable by its absence from the Government announcement.

“Now Eamon Ryan has hinted that there will be some change in personnel in the new year, but we have heard empty noises from the Green Party on this issue before. What we need to see now is action. We need to see the detail of what Minister Ryan is talking about.”

Mr Morgan also called for the Criminal Assets Bureau and the Office of the Director of Corporate Enforcement to investigate the practices of Anglo Irish Bank.