AIB scandal - Root and branch bank reforms vital

BEATING its breast in a belated act of contrition, AIB is forking out almost €35 million by way of restitution to thousands of customers - not because it broke the law, which it now accepts, but because it is crucial to restore trust in the bank.

Caught red-handed in Ireland's worst overcharging controversy, the country's largest banking group had no choice but to put up its hands and admit it had "messed up", to quote AIB chairman Dermot Gleeson.

People will be reassured by this frank admission that the company was in breach of the law by not informing the Irish Financial Services Regulatory Authority (IFSRA) about the problems of overcharging on its foreign exchange.