Kenny 'appalled' at €3m golden handshake for ex-AIB boss

A new report on the causes of the banking crisis says the main reason for the financial crash was the unhindered expansion of the property bubble financed by the banks.

The Taoiseach Enda Kenny has said he, like the rest of the country, is absolutely appalled at a multi-million euro "golden handshake" payment to the former Chief Executive at Allied Irish Banks.

It emerged earlier that Colm Doherty received more than €3m when he was forced out of the job last November as part of the second bailout of AIB.

The current Government has said it is powerless to do anything about the payment as it was made last November.

The Finance Minister Michael Noonan said he cannot guarantee that anyone else leaving the State-covered banks will not be entitled to massive payments also.

The Taoiseach said there are questions to be answered about the payment and other banking issues that need to be uncovered by an Oireachtas inquiry, but the Constitution needs to be changed to allow this.

Mr Kenny said: "I have no intention of going down a road where this Oireachtas is going to be laughed literally out of court in attempting to pursue something that it cannot do because of the inadequacy of its powers."