Business Reaction

Reaction to Anglo Irish Bank resignations

* The Professional Insurance Brokers' Association (PIBA) warned yesterday that it was "not at all certain that the appalling practices at Anglo Irish Bank were not illegal". Its chairman, Jack FitzPatrick, said there were a plethora of questions to be answered before making a judgment.

"We need to know who signed off on these highly irregular loans, were the loans properly secured and we need to know what happened within Irish Nationwide," he said.

"We should remember that these seismic and irregular practices have had devastating financial consequences for shareholders who were very deliberately kept in the dark."

* Investment managers, responsible for much of the share-buying on the Irish Stock Exchange, yesterday said they were surprised and disappointed by the circumstances of Séan FitzPatrick's resignation as chair of Anglo Irish Bank and chief executive David Drumm's decision to leave.

The Irish Association of Investment Managers (IAIM) said investors expect the highest levels of transparency in dealings by directors of listed companies.

"The IAIM will be writing directly to the new chairman to set out its concerns in respect of the matter and await the outcome of the board's review of governance at the bank," it added.

* The chartered accountants' regulator pledged yesterday to investigate the circumstances surrounding inappropriate loans given to Séan FitzPatrick at Anglo Irish Bank, and any part that Institute of Chartered Accountants in Ireland members may have played in it. The Chartered Accountants Regulatory Board said it would engage with the other regulators and statutory bodies involved.

* Stockbrokers warned that the Anglo Irish affair has hit the relationship between the bank and its investors. "Obviously the whole issue of trust has been broken between shareholders and the bank," said one Dublin-based dealer.

* Fine Gael finance spokesman and deputy leader Richard Bruton said the Financial Regulator must explain "why he apparently took no action" over inappropriate financial practices by Seán FitzPatrick and the apparent failure of corporate governance at Anglo Irish Bank.

"It seems this issue only came to a head recently, despite the regulator having known about the irregularities since earlier this year. In particular, the regulator must explain when he knew, how he knew, and what action he took," he said.

* Labour's finance spokeswoman, Joan Burton, wants the Dáil's finance and public service committee to question the Financial Regulator and the Minister for Finance, Brian Lenihan, about their knowledge of the Anglo Irish Bank affair.

Ms Burton said she is writing to the committee's chairman, Michael Ahern TD, seeking an emergency meeting on Monday.