Brian Hayes MEP today submitted a formal question to the ECB’s Single Supervisory Mechanism in relation to the whistleblower complaints that AIB exaggerated its progress in dealing with bad loans.
“In the interest of transparency, I have asked the SSM to disclose whether it has received this complaint and will investigate it. I have also sought to find out what the SSM procedures are for investigating complaints such as these from whistleblowers.
“This complaint is of a most serious nature. Any assertion that a bank did not accurately report on the status of its loan book cannot be taken lightly. The SSM has the power to deal with any breaches of its rules by imposing sanctions. A bank can be fined up to 10% of the amount of its annual turnover by the SSM if that bank fails to comply with ECB legal acts.
“I have asked the SSM to clarify what specific sanctions may be imposed on a bank if it does not accurately report on the status of impaired or non-performing loans.
“Given the problems Ireland’s main banks have experienced with their balance sheets throughout the financial crisis, I believe it is of utmost importance that we are aware of the procedures involved in investigating any reporting breaches and what the consequences will be.”