Gilmore: Little change in top management of banks

THERE’s been little or no change in the top management of the country’s banks in return for the “largesse of the taxpayer”, according to the Labour Party leader, Eamon Gilmore.

He said banks are “very quick to come with their hands out seeking assistance”, but that just seven of the 42 bank directors have left their positions since the state guarantee was made to the financial institutions just over a year ago.

Mr Gilmore also claimed there was disagreement between the Government and the board of AIB over the appointment of a new chief executive for the bank.

“Will there be an internal appointment as the board of the bank wants to insist upon? Will there be an external appointment as it would appear the Minister for Finance desires?” Mr Gilmore asked the Taoiseach in the Dáil yesterday.

Brian Cowen responded that there has “been an ongoing effort, internally and externally, to determine who the best candidate for the post” to replace outgoing chief executive Eugene Sheehy will be.

The Taoiseach said he did not agree with the contention by Mr Gilmore that there has been little change at the top of the banks.

“There are different chairmen in the various banks and different chief executives in various banks and building societies,” he said.

“There was an increase in the number of public interest directors appointed by the Government, and quite rightly so, in an effort to promote public confidence and ensure stability and continuity in a way that will ensure the orderly reform of the banking system,” Mr Cowen said.

Mr Gilmore said there is “little or no evidence” of this: “All 10 of the directors of AIB who were in place at the time the guarantee was made are still in place. Eleven of the 13 directors of Bank of Ireland who were in place at that time are still in place. With regard to EBS, eight out of 11 directors are still in place and, with regard to Irish Life and Permanent, six out of eight are still in place.

“That is with the exception of the public interest directors,” he said.

But last night a government spokesman accused Mr Gilmore’s researchers of overlooking a few important facts regarding AIB.

There had been five resignations and or retirements since the state guarantee had been put in place — Dermot Gleeson, John O’Donnell, Bernard Somers, Michael J Sullivan and Donal Forde, all of whom held top posts, are no longer with the bank, the spokesman stressed.