Former B of I chief to join Anglo bank board

THE FORMER chief executive of the Bank of Ireland, Maurice Keane, is to become a non-executive director of Anglo Irish Bank after it is nationalised, the Minister for Finance Brian Lenihan announced yesterday.

Mr Lenihan “noted” the resignation yesterday of five of the non-executive directors of the bank. They are: Ned Sullivan; Gary McGann; Noël Harwerth; Michael Jacob; and Anne Heraty.

“The Minister intends that the recently appointed chairman of the board, Donal O’Connor, will stay on as chairman,” a spokesman for his department said.

“Frank Daly and Alan Dukes, who were recently appointed to the board under the bank guarantee scheme, have not resigned and will also continue in their positions. The day to day business of the bank will continue as normal,” Mr Lenihan said.

The bank said the directors who resigned were stepping down to facilitate the appointment of new board members once the bank has been formally nationalised following the enactment of legislation in the Houses of the Oireachtas.

Two executive directors remain on the board, Declan Quilligan and Pat Whelan. Mr Quilligan was expected to be announced as the new chief executive of the bank last Friday but the Government’s decision last Thursday to nationalise the bank means that decision will now be a matter for the new board.

Mr Lenihan said further announcements on other appointments to positions in Anglo Irish Bank would be made later.

Mr Keane has, since 2002, been a non-executive director of DCC plc, the company which unsuccessfully fought a massive civil insider dealing action involving the former managing director of the group, Jim Flavin. DCC is currently being investigated by a High Court inspector.

In February 2007, Mr Keane was appointed as a member of the National Pensions Reserve Fund Commission by the then minister for finance, Brian Cowen.

He was group chief executive of the Bank of Ireland from 1998 until his retirement in 2002.

Mr Lenihan has said that the new board of the bank, once appointed, will be asked to draw up a business plan for the bank, which he will consider for approval.

He has not made clear how exactly he would like the bank to operate. He has indicated he wants to see the bank continue in business but on the other hand he has not ruled out the possibility that it might be used as a so-called “bad bank”, which would gather within one institution the bulk of the more troubled debts in the Irish banking system.

Mr Lenihan hopes legislation to give effect to the nationalisation of the bank will pass both Houses of the Oireachtas today and be signed into law by President Mary McAleese.