Credibility challenge for Keane after failure

Bank of Ireland's group chief executive, Mr Maurice Keane, will face a significant task to rebuild his own credibility following the collapse of the proposed Alliance & Leicester deal.

As the chief architect of the failed merger, Mr Keane's judgment was being seriously questioned by analysts last night.

Mr Keane became chief executive of Bank of Ireland in January 1998 following the retirement of former chief executive Mr Pat Molloy. He was viewed at the time as a traditional and fairly conservative banker who was unlikely to introduce any major changes.

His proposal, not just to seek a merger with Alliance & Leicester to create the first cross-Channel banking group but effectively to cede day-to-day control of the merged entity to the head of the smaller A & L, is now being viewed as a major misjudgement.

Mr Keane's long career in banking began in 1958 when he joined National Bank which was subsequently taken over by Bank of Ireland. He worked his way up through the branches to a planning role in the bank's Dublin headquarters, progressed to executive level and was appointed to the court of directors in 1983.

He has headed many of the bank's subsidiaries, notably corporate banking, treasury and international, and has been involved in overseeing much of the group's lending activities in both the domestic and international markets. In 1991, he was appointed deputy chief executive to Mr Molloy, paving the way for his eventual appointment to the top slot.

Apart from the proposed deal with Alliance & Leicester, Mr Keane played a key role in many of the bank's major acquisitions in both the UK and US. He was closely involved in the acquisition of First New Hampshire Bank in the US and became its chairman in 1992. When First New Hampshire merged with Citizen's Financial Group in 1996, he remained on the board. Bank of Ireland owns 23.5 per cent of the US institution.

Mr Keane was also instrumental in the acquisition of Bristol & West in Britain where he is also a director. At the time of that acquisition, Bank of Ireland indicated it would expand the Bristol & West operation, both growing its core mortgage business and adding on suitable acquisitions.

Married with one son and one daughter, Mr Keane is a native of Castleisland, Co Kerry. He studied for a Commerce degree as a night student and later completed a master's degree in Economics. He enjoys skiing and has been active in the Irish Bankers' Federation.

Mr Keane has a reputation as a straight talker and is regarded as very direct in his dealings with others. Some in the industry describe his temperament as acerbic while others have pointed to a sardonic sense of humour. It is one he is likely to have to draw on in the days and weeks ahead.