DUBLIN, Jan 9 (Reuters) - Ireland's financial regulator chief Patrick Neary said on Friday he would retire at the end of January after an internal committee completed its findings into a loan scandal at Anglo Irish Bank.
The niche commercial lender sent shockwaves through the financial industry last month when then chairman Sean FitzPatrick acknowledged that had he kept shareholders in the dark about 87 million euros ($119 million) worth of loans he received from the bank.
Neary said he had deferred a decision about his retirement until the committee had presented its report, which it did on Friday.
'In taking my decision to retire now, I am conscious of the need to uphold the good standing of the regulator and public confidence in it, especially at a time of great financial turbulence which is challenging all regulators worldwide,' Neary said in a statement.
Last month, it was disclosed that some regulatory staff became aware of the loans in January 2008.
'So far as I am concerned, I was not advised of any such matters in early 2008, and there has been no oral, written or e-mail escalation of these issues to me or to the authority over the period until the matter was raised with me by the minister (of finance Brian Lenihan) on 10 December 2008,' Neary said.
The Irish Financial Services Regulatory Authority said in a separate statement that it had appointed its consumer director Mary O'Dea as the regulator's acting chief executive with its chairman Jim Farrell assuming enhanced responsibilities.
Commenting on the probe into loans at Anglo Irish, the regulator said: 'The committee concluded that there was a breakdown in terms of internal communications and process and in the regulatory follow-up and response of the organisation.'
'This resulted in a failure to take appropriate and timely actions in relation to what was a serious matter and to escalate the matter to the authority.'
(Reporting by Jonathan Saul; Editing by Toni Reinhold) Keywords: IRELAND REGULATOR/ (jonathan.saul@reuters.com; +353 1 500 1504; Reuters Messaging: jonathan.saul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The niche commercial lender sent shockwaves through the financial industry last month when then chairman Sean FitzPatrick acknowledged that had he kept shareholders in the dark about 87 million euros ($119 million) worth of loans he received from the bank.
Neary said he had deferred a decision about his retirement until the committee had presented its report, which it did on Friday.
'In taking my decision to retire now, I am conscious of the need to uphold the good standing of the regulator and public confidence in it, especially at a time of great financial turbulence which is challenging all regulators worldwide,' Neary said in a statement.
Last month, it was disclosed that some regulatory staff became aware of the loans in January 2008.
'So far as I am concerned, I was not advised of any such matters in early 2008, and there has been no oral, written or e-mail escalation of these issues to me or to the authority over the period until the matter was raised with me by the minister (of finance Brian Lenihan) on 10 December 2008,' Neary said.
The Irish Financial Services Regulatory Authority said in a separate statement that it had appointed its consumer director Mary O'Dea as the regulator's acting chief executive with its chairman Jim Farrell assuming enhanced responsibilities.
Commenting on the probe into loans at Anglo Irish, the regulator said: 'The committee concluded that there was a breakdown in terms of internal communications and process and in the regulatory follow-up and response of the organisation.'
'This resulted in a failure to take appropriate and timely actions in relation to what was a serious matter and to escalate the matter to the authority.'
(Reporting by Jonathan Saul; Editing by Toni Reinhold) Keywords: IRELAND REGULATOR/ (jonathan.saul@reuters.com; +353 1 500 1504; Reuters Messaging: jonathan.saul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.