Allied Irish Bank's officials greeted the decision of Guinness and Mahon to take over Mr Charles Haughey's account with a feeling of "considerable relief", a former deputy chairman has told the Moriarty tribunal.
Board members were very satisfied "to get rid of a very troublesome account" following the final settlement with Mr Haughey.
Mr Joseph McGlynn said he had been aware that Mr Haughey was a bank customer, but did not know the extent of his debt, which stood at £1.14 million. He was also not told of the details of the settlement reached between Mr Haughey and the bank in February 1980.
"The only recollection I have is hearing some time after that Guinness and Mahon had taken over the account and, I must say, that the general feeling was one of considerable relief," he said.
Counsel for the tribunal, Mr Jerry Healy SC, said it was now known that Mr Haughey's debt stood at more than £1 million, which must have been one of the largest personal debts owed to the bank. Mr Healy asked whether Mr McGlynn was surprised when he learned of the extent of the debt and the fact that this matter was not notified to the board.
Mr McGlynn said he was not surprised. The management of accounts was dealt with first by the branch manager, and there was a chain of command up to a banking director, in this case.
Also, there were sufficient funds in the suspense account to cover any deficiency in the settlement and "a modicum" which had been taken into profits.
"The bank didn't get the money it was owed, is that correct?" asked Mr Healy.
"It did not," Mr McGlynn said, smiling.
Mr Healy suggested it seemed surprising that although two members of the board had been intimately involved with the settlement, Mr Haughey's debt had not come to the notice of the board.
Mr McGlynn said it could well have been mentioned, but he had no recollection of it happening.
Mr Healy asked whether he thought a member of the public might be surprised that this had not been brought to the board's attention.
"They haven't the same experience in collecting bad debts as some bankers have," Mr McGlynn replied.