Banks must be punished for violations

Depositing E25 million with the Central Bank does not constitute a grand gesture on the part of Allied Irish Bank towards the foreign exchange customers it bilked.

The bank was merely making restitution. None of the money represents a fine or penalty imposed on the bank for depriving so many people of so much money, simply because no provision for such sanctions exist in current relevant financial legislation.

The deposit was prompted by a "frank discussion" with the Irish Financial Services Regulatory Authority (IFSRA), rather than by any pricking of the bank's putative corporate conscience.