THE SECOND highest-ranking executive on Anglo Irish Bank's management team has become the fourth director of the bank to resign following the controversy over secret directors' loans, writes Simon Carswell, Finance Correspondent.
Willie McAteer's decision to step down as finance director and chief risk officer yesterday afternoon follows the resignations of chairman Seán FitzPatrick, chief executive David Drumm and non-executive director Lar Bradshaw in the week before Christmas.
The resignations follow the disclosure last month that Mr FitzPatrick concealed loans of €87 million from shareholders and the public by transferring them off the bank's books before its September 30th year-end over an eight-year period between 2000 and 2007.
Anglo said in a statement that it expected to announce a new chief executive to replace Mr Drumm before the extraordinary general meeting on January 16th to approve the Government's €1.5 billion capital injection in return for a controlling 75 per cent stake.
Anglo's new chairman Donal O'Connor said the bank's board would be strengthened through the appointment of new non-executive directors "in the near future".
"The combination of new management and board appointments represent key initial steps in the rebuilding of trust and confidence in the bank," said Mr O'Connor.
Investors responded positively to the latest resignation and notification that Anglo would appoint three new executive directors and three non-executive directors.
Anglo's share price climbed 25.6 per cent yesterday, adding five cent, to 26 cent, valuing the bank at €197 million. The bank has fallen 98 per cent from its peak in 2007.
The bank said it would be splitting Mr McAteer's dual role of finance director and chief risk officer, and that it had appointed chief financial officer, Matt Moran (36), "finance director designate".
Mr O'Connor, who took over from Mr FitzPatrick on December 18th, said an external candidate would be appointed as the new chief risk officer at the bank.
The bank has appointed Peter Butler, managing director of Anglo's wealth management division, as acting chief risk officer.
A veteran of Anglo, Mr McAteer (58) joined the bank 17 years ago after working with accountants Pricewaterhouse, where he was a partner, and Yeoman International, the investment firm owned by businessman Paul Coulson.
He decided not to put his name forward as a candidate when the bank sought a replacement to succeed Mr FitzPatrick as chief executive in 2004. Mr McAteer was due to retire later this year.
Two members of the Irish Financial Services Regulatory Authority are due to report tomorrow the findings of their inquiry into the regulator's handling of the directors' loans controversy.
