| 8.7°C Dublin

McCreevy joins board of BNY Mellon's Dublin unit

FORMER finance minister Charlie McCreevy has been appointed as a director of Dublin-based Bank of New York Mellon Clearing International (BNY Mellon Clearing), a unit of the global banking group.

The appointment comes just months after he was forced to resign as director of a UK bank by an EU ethics committee.

The new appointment is understood to have been made on February 18, just weeks after the end of the 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.

Last night, a spokesman for BNY Mellon confirmed that Mr McCreevy has been appointment as a non-executive director of the Dublin-based unit pending regulatory approval.

The spokesman would not comment on Mr McCreevy's remuneration package.

The appointment is sure to reignite calls to end so-called 'revolving door appointments' of senior government official to businesses operating in areas they had previously been involved in overseeing.

Last October the former Fianna Fail TD was forced to step down from the board of UK investment firm NBNK after the European Commission ethics committee blocked the appointment which fell within the one-year quarantine period.

A notice filed with the Companies Offices shows the appointment took affect from February 18.

Mr McCreevy was European Internal Markets and Services Commissioner from 2004 until February 2010. All EU officials are blocked from taking up private-sector jobs that could entail a conflict of interests.


Business Newsletter

Read the leading stories from the world of business.

This field is required

BNY Mellon Clearing was set up in 2010 by BNY Mellon, which is the oldest bank in the US, to tap what it sees as a growing market for centralised clearing, or execution, of derivatives deals.

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

The contracts were traditionally traded 'over-the-counter' or privately before regulators in the US and Europe encouraged a move to trading through centralised clearing houses in 2009, as a result of the credit crisis.

As commissioner, Mr McCreevy was responsible for drawing up regulations governing the European market in financial derivatives and other financial securities.

A spokesperson for the European Commission was not available for comment yesterday and Mr McCreevy could not be reached.

BNY Mellon is a global player in asset management and securities servicing. It has operated in Ireland since 1994 and employs 1,800 people in Dublin, Cork, Wexford and Navan across a number of businesses.