Financial Regulator chairman appears before Oireachtas Committee

The chairman of the Financial Regulator said today that the behaviour of some individuals at the top of our financial institutions had been totally unacceptable.

The Authority appeared before the Oireachtas Committee on Economic Regulatory Affairs this afternoon, tasked with explaining how the head of the Financial Regulator didn't know about improper loans to directors at Anglo Irish Bank.

The bank's chairman quit in December, and the chief executive of the Financial Regulator, Patrick Neary announced last week that he would step down at the end of the month, following considerable public criticism.

Financial Regulator chairman Jim Farrell told the committee that those in control of our financial institutions had failed to act appropriately:

“The behaviour of people operating at the top of our financial institutions must be fully appropriate for the responsible positions,” Mr Farrell said.

“Some of the behaviour we have witnessed of late is thoroughly unacceptable.”

Independent Senator Shane Ross attacked the Financial Regulator for not investigating Anglo Irish Bank sooner.

He accused the Authority of being too close in general to the banks, and not fining them for their past actions:

“There was the overcharging; there was the DIRT situation; there was a catalogue of misdemeanours by the banks here, which they got away with scot-free,” Senator Ross said.