Bain & Co, the American financial consultants once led by US presidential candidate Mitt Romney, has hauled in €30m in fees from taxpayer-owned IBRC to date. Bain, which advised the British government on Northern Rock, has been working with IBRC, formerly Anglo Irish Bank, since the end of 2009.
It earned huge fees looking at how to restructure the organisation to maximise how to return cash to the taxpayer. It was involved in the bank's original plan to split itself into an "old" and "new" bank that was later vetoed by the European Commission, which decided it wanted to wind down the entire bank.
The consultancy has also advised IBRC on corporate governance issues and numerous other aspects of the bank which, as well as being walloped by the property bubble, has also seen experienced staff either retire or be poached by other banks. One of its most recent major projects was advising IBRC on its takeover of the loan book of Irish Nationwide.
IBRC does not detail how much it pays individual consultants and advisors which also include KPMG, PwC, McCann Fitzgerald, Freshfields, JP Morgan and others.
The bank said in March it had incurred exceptional costs of €82m which included professional fees associated with restructuring, asset sales and legacy matters.
Romney started his business career with Bain & Co in 1977. In 1985, he went to work with Bain Capital, then its sister private equity firm, before returning to the consultancy in the early Nineties as interim chief executive. Romney led a complex financial restructuring of the consultancy which resulted in it becoming a separate business. He then returned to Bain Capital.