CENTRAL BANK:THE BOARD of the Central Bank is likely to be overhauled when it is re-merged with the Financial Regulator, Minister for Finance Brian Lenihan indicated yesterday.
The two reports on the Irish financial crisis published yesterday highlight the Central Bank’s failure to face up to the risks posed by runaway property lending. Most of its current non-executives were directors during the period. Mr Lenihan said new legislation is on the way that will re-merge the Central Bank with the regulator.
He said he would leave a decision about the Central Bank board’s make-up until the new law is passed, and would then appoint a new board. At that point, he said,there are likely to be changes in the membership of the board. Some members have already indicated to him they would be likely to step down then, he added.
The longest-serving member of the current board of the Central Bank is the general secretary of the Irish Congress of Trade Unions, David Begg who is also a member of the Irish Times Trust. Other long-serving members are barrister Gerard Danaher and novelist Deirdre Purcell.
The members of the board and their respective dates of appointment are: Patrick Honohan (governor, September 2009); Tony Grimes (director general, August 2007); Mr Begg (May 1995); Mr Danaher (October 1998); Kevin Cardiff (secretary general Department of Finance, January 2010); John Dunne (former chairman of Ibec, May 2003); Jim Farrell, (chairman of the Financial Regulator, May 2008); Alan Gray (Indecon, December 2006); Brian Hillary (chairman of Independent News Media, May 2008); Matthew Elderfield (chief executive, Financial Regulator, October 2009); Dermot O’Brien (economist, May 2008); and Ms Purcell (May 2003).
The members of the authority of the Financial Regulator are: Jim Farrell (chairman, first appointed member May 2003); Mr Elderfield (January 2010); Alan Ashe (former managing director Standard Life Assurance, May 2003); Mr Danaher (May 2003); Mr Dunne (May 2003); Mr Gray (May 2003); Mr Grimes (May 2008); Ms Purcell (May 2003); and Dermot Quigley (former chairman of the Revenue Commissioners, May 2003).
Former chairman of the Financial Services Regulatory Authority Brian Patterson said he did not want to comment on the reports issued yesterday. A former Irish Times board chairman, he said he had not yet read them and it would be inappropriate to comment.
Efforts to contact the former chief executive of the authority, Liam O’Reilly; former Central Bank governor, John Hurley; and former finance minister Charlie McCreevy, were unsuccessful.