Monday 19 November 2018

Demise of AIB chiefs must lead to new approach

Nationalisation may be the only route to ensure taxpayers get value for money, writes Alan Ruddock

Alan Ruddock

SEVEN months after the Government was forced to step in to rescue Ireland's banks, the chairman and chief executive of AIB were finally persuaded to step aside.

Neither man has, of course, resigned or been sacked: in the semantics of corporate failure Dermot Gleeson, the chairman, is "standing down"; while Eugene Sheehy, the chief executive, will "retire" when a successor has been identified. They have been joined in the departure lounge by John O'Donnell, the finance director, who also "retires" in August.

No matter how it is spun, however, their ending is ignominious. The bank over which all three presided now exists at the whim of the State, its liabilities and deposits guaranteed by the taxpayers and its balance sheet requiring yet more taxpayers' money to keep it solvent.

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