AIB halts €40m bonus pay after Lenihan threat

AIB has decided not to pay the controversial €40 million in bonuses due to staff following intervention by the Government.

The bank got off the hook after Finance Minister Brian Lenihan told the troubled institution not to pay the bonuses if it wanted further funds from the state.

After discussing the issue with the Attorney General, Mr Lenihan wrote to AIB yesterday stressing the degree to which it was dependent on taxpayers’ money and saying the public’s interest needed to be protected.