AIB chief executive vows to tackle property loans to managers - The Irish Times - Sat, Feb 23, 2013
From the article 'David Duffy, the chief executive of AIB, said that, while he does not have the exact details of how many of the bank’s staff used loans during the Celtic Tiger to dabble in the property market, he accepts that the practice prevailed'
'But the days of the banker becoming the investor are now over at AIB, he said, promising to root out and dismiss any manager or other member of staff who used their position to borrow the bank’s money for their own gain.'
So what exactly is Duffy saying? Is he actually going to look at past loans that AIB managers gave to themselves for property speculation and property development and 'root' them out? As an aside I wonder would a manager lending to himself have got a bonus based on the amount that he lent!
Or is Duffy simply stating that such unethical behaviour will not be tolerated in the future and that he has no intention of investigating such loans that took place in the past and that a that a blind eye is in effect being turned.
It would be interesting to see if he is willing to state whether any action will be taken against staff who broke guidelines that were already in existence when they lent themselves money for property speculation and development.
What were the guidlines then and what are they now?