New non-executive director worked with Merrill Lynch

State-controlled AIB has appointed former banker Peter Hagan, who has worked at US bank Merrill Lynch and Japanese lender Aozora Bank, as a non-executive director.

Mr Hagan (63) will remain as a director of the US subsidiary companies of Irish Bank Resolution Corporation, the former Anglo Irish Bank, pending the appointment of a replacement.

He has spent 35 years in banking. He was chief credit officer for Merrill Lynch’s capital markets and international business and as chairman and chief executive of the company’s US banks.

AIB said Mr Hagan was a consultant supporting international banks on defending litigation and on regulatory changes. He has also worked with the First National Bank of Chicago, consultants McKinsey and Crocker National Bank.

He has held senior executive roles at private equity firm Cerberus Capital Management, business advisory consultancy LECG Corporation and New York executive search consultancy Jay Gaines and Co.

Mr Hagan becomes the 10th member of the AIB board, which reports results for the first half of the year today. The bank is 99.8 per cent owned by the Government after receiving a €20.7 billion capital injection.