Ireland to ban bank CEOs rising to chairmen-minister

DUBLIN, (Reuters) – Ireland said on Tuesday it  would ban banks from promoting their chief executives to  chairmen and put a stop to directors holding multiple positions  as part of an overhaul of its corporate governance rules.

Ireland is anxious to restore its position as a venue for  international finance after a series of scandals around  nationalised lender Anglo Irish.

“I made it clear that cross directorships in banks and  other private companies and the promotion of chief executives  to chairman positions in banks has to be stopped and will be  stopped,” Finance Minister Brian Lenihan told state broadcaster  RTE after meeting business leaders in the City of London.

“I have to say I found that message was very well received  in the City.”

Anglo Irish’s former chairman Sean FitzPatrick admitted  last year that he had kept shareholders in the dark about 84  million euros worth of loans he had received from the bank. The admission triggered a boardroom purge and Anglo’s  eventual state takeover.

FitzPatrick had previously been chief executive of the  commercial property lender and in addition to resigning as  chairman also resigned as chairman of packaging group Smurfit  Kappa and as a director at Greencore and Aer Lingus in the wake  of the scandal.

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