EBS BUILDING Society declined to comment last night on reports that US private equity firm WL Ross will install former US housing finance regulator James B Lockhart on the board of EBS if the company takes over the lender.

It is understood that Mr Lockhart, who is the vice-chairman of WL Ross, has been leading the company’s negotiations with the EBS on the sale of the building society. WL Ross is part of a consortium led by Irish firm Cardinal and US private equity giant Carlyle, which is bidding for the 75-year-old financial institution.

Wilbur Ross, the billionaire chairman and chief executive of WL Ross, said last month the consortium would consider cutting the mortgage interest repayments that customers would be required to pay to service their mortgages if they were successful in their bid for the mutual.

EBS chief executive Fergus Murphy said at the building society’s interim results last week that the EBS had not engaged with Mr Ross in relation to his comments that part of the capital of homeowners’ mortgages might be written down.

On Thursday, the Minister for Finance Brian Lenihan said that, while the EBS would need no further State money, it could require further funds, which would be provided by the new owner.

To date the Government has injected €350 million into the EBS, and has pledged a further €440 million to allow the building society to fulfil its capital requirement as set out by the Financial Regulator.