Wednesday 29 January 2020

McCreevy's BNY Mellon Clearing role 'terminated'

Donal O'Donovan

Donal O'Donovan

Former Finance Minister Charlie McCreevy is no longer a director of IFSC-based Bank of New York Mellon Clearing International (BNY Mellon Clearing).

Mr McCreevy's appointment to the board just last year sparked controversy.

That was because he joined the board within weeks of the end of a 12-month 'quarantine' period when the former EU Commissioner was blocked from taking up private-sector jobs that could entail a conflict of interests with his former role.

The BNY Mellon 'Clearing' unit was set up in 2010 to tap what was seen as a growing market for centralised clearing, or execution, of deals involving complex derivatives.

Derivatives are contracts intended to allow banks and large companies to limit their financial risks.

The board is now being slimmed down because the unit is no longer active.

All 10 non-executive directors of the IFSC-based company have been let go and the company has secured approval from the Central Bank to give up its status as a regulated company.

Services

The US bank will continue to offer the derivatives services provided by the IFSC unit, but through its other Irish and European subsidiaries.

Mr McCreevy's appointment raised eyebrows because as EU Commissioner he had been responsible for drawing up regulations governing the European market for the financial derivatives and other financial securities.

Now, the former Internal Markets Commissioner's directorship of the Irish unit of the US bank has been "terminated" along with those of nine other directors, according to papers filed with the Companies Office.

All 10 directors left the board on October 18.

Just two directors are now responsible for the company, Companies Office records state.

Bank of New York Mellon employs around 1,800 staff in Ireland through a number of subsidiaries.

Its main business in Ireland is in asset management and securities servicing. It has operated in Ireland since 1994 with offices in Dublin, Cork, Wexford and Navan.

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