AIB in approach to Anglo loan managers

AIB HAS made an approach for a number of key executives from Anglo Irish Bank in recent weeks.

It is believed up to 20 managers in Anglo’s group recovery management unit, the division of the bank which deals with the bank’s non-National Asset Management Agency (Nama) distressed loans, are being targeted by AIB as the bank attempts to deal with its own distressed loan book. The Anglo unit was set up by chief executive Mike Aynsley over a year ago as a way of dealing with distressed assets and recovering the maximum value from troubled loans.

It is understood AIB is offering pay increases of up to 30 per cent to the Anglo employees, most of whom are employed at management level, and run small teams. A spokesman for AIB declined to comment yesterday. There has been some speculation Mr Aynsley is a possible contender for the position of chief executive of AIB.

Last week AIB confirmed Gerry McGinn, chief executive of Irish Nationwide – the building society folded into Anglo Irish Bank earlier this year – is to become managing director of AIB’s First Trust Bank unit in Northern Ireland.

Last week, Anglo Irish Bank announced plans to cut up to 350 jobs from its 1,280-strong workforce by the end of next year.

An estimated 200 Anglo staff have already moved to AIB following the transfer of Anglo Irish Bank’s €8.6 billion deposit book to the bank earlier this year.

But while Anglo Irish Bank is in wind-down mode, the group recovery management unit is dealing with the wind-down of the bank’s commercial and residential loan books in Ireland, a process which could take up to 10 years.

It is understood the prospect of a permanent position with AIB may entice Anglo employees to the bank.

AIB plans to initiate 2,000 redundancies which are to be carried out on a phased basis to the end of 2012.

However, the announcement of those cuts has been delayed by a failure to reach agreement on redundancy payouts.

The heads of human resources at AIB, Anglo and Irish Life Permanent were called to a meeting at the Department of Finance on July 28th and told to draw up proposals for redundancy pay at or below public sector rates.

The Irish Bank Officials’ Association (IBOA) predicts 6,000 full-time jobs will have been lost in the Irish banking sector in the period between the onset of the financial crisis and the end of next year.