Sheehy admits Goodbody’s scheme was wrong

The chief executive of AIB has admitted the bank was wrong when its stock broking arm Goodbody’s operated a scheme to get around a ban on trading in the bank's shares in 2001.

That ban put the stockbroker at a competitive disadvantage to its rivals.

Eugene Sheehy has been giving evidence to the Oireachtas Committee on Economic and Regulatory Affairs.

Recently the committee was told by Eugene McErlean, a former auditor at the bank, that he had discovered that Goodbody’s had used a black-listed tax haven to hide its dealings in AIB shares.

Eugene Sheehy said the scheme that was used was different from the original one but was stopped after a number of months.