Dáil Éireann - Volume 675 - 18 February, 2009

Written Answers. - Banking Sector Regulation.

Deputy Eamon Gilmore asked the Minister for Finance the date and the circumstances in which his attention was first drawn, whether formally or informally, to the inappropriate warehousing of directors loans in advance financial year end at Anglo Irish Bank and facilitated by Irish Nationwide Building Society; if his attention has further been drawn to other such instances of the inappropriate treatment of directors loans by other financial institutions covered by the bank guarantee; and if he will make a statement on the matter. [6345/09]

  Deputy Brian Lenihan: In December 2008, I asked the Financial Regulator about the level of director’s loans at Anglo compared to other financial institutions. The Financial Regulator informed me following my enquiry of the movement of the former Chairman’s loans to the Irish Nationwide Building Society prior to Anglo Irish Bank’s year end and the practice in that regard over the previous seven years.

As I have already stated, the practices which took place in relation to these loans were unacceptable. The matter is the subject of investigations by both the Financial Regulator and the Office of the Director of Corporate Enforcement, and will be dealt with appropriately.

The Financial Regulator is also investigating director’s loans at all institutions covered under the Guarantee Scheme, to ensure that any other such instances are identified. I am not aware at this stage of any other instances of inappropriate treatment of director loans by other financial [457] institutions covered by the bank guarantee. Breaches of regulatory or legal requirements in relation to director’s loans will be dealt with in accordance with the law.