Clear out of bank boards is almost complete

Fine Gael Kerry Senator and Seanad Chief Whip, Paul Coghlan, has said that significant progress has been made on introducing fresh blood onto the boards of our State-supported banks. Senator Coghlan added that the need to overhaul the bank boards was further underlined by the job losses announced at AIB this week.

“Ordinary staff at AIB have been left deeply concerned after it was announced this week that the Bank will be seeking up to 2,500 redundancies. It’s a very hard time for the staff involved, and I am confident that the full supports of the State will be made available to them.

“The AIB announcement is a very difficult, yet inevitable, consequence of the downsizing of our banks following the economic crash. It’s essential that the boards and top management of the banks are cleared of the people who were responsible for the decisions that led to our current financial situation. I have been pursuing this issue for some time, and I know it is a situation that the Minister for Finance, Michael Noonan, has been closely monitoring.

“I am pleased to receive confirmation from the Department of Finance that significant progress has been made. Of the 74 boards members that were in place as the crisis emerged in 2008, just 10 remain. I understand that a number of these individuals are due to retire in the coming months.

“It is encouraging that a total of 64 individuals, who had been in place at the height of our economic crisis, have now been replaced. This allows for fresh blood, and for a new culture of accountability to be fostered. This is just one of a number of crucial steps that are being taken to re-establish our banking sector.”