AIB UNVEILS MANAGERS TO LEAD ITS NEW SECTORS - The almost fully nationalised Allied Irish Banks named nine members of its new management team yesterday but the search for a chief executive continues, says the Irish Times. The bank, which is 93% State-owned, has appointed six internal executives and three external candidates to the team which will report to AIB executive chairman David Hodgkinson. A spokeswoman for the Central Bank said it had approved all of the new appointments. AIB is being restructured into three "customer-facing" divisions - personal and business banking, corporate and institutional banking, and commercial banking. Chief financial officer Bernard Byrne, who joined from the ESB in May 2010, is the new director of personal and business banking. Another internal candidate - Jerry McCrohan, managing director of AIB capital markets - is being appointed director of the other two new banking divisions. Mr Hodgkinson told The Irish Times the bank would need to offer "a market-based compensation package" to appoint a new external chief executive and that it was working with the Department of Finance to pay a salary above the €500,000 Government cap. "Our engagement with the department has been positive," he said. "The reality is that we have got to do some tough things."
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NTMA TEAM TAKES GLOBAL TRIP TO LOBBY BOND MARKET - The NTMA is to embark on its first investor roadshow since Ireland received its €85 billion bailout in December with China among the countries to be visited, the Irish Independent understands. The team from the NTMA, led by chief executive John Corrigan, will visit London, Paris, New York, Hong Kong and Singapore and the west coast of the US in an attempt to drum up fresh interest in Irish government debt. While the NTMA is playing down the importance of the trips, ultimately the process is designed to keep channels of communication open with key bond buyers, so that if Ireland re-enters the bond market interest will be in place. The treasury agency also wants to hold discussions with existing holders of Irish government debt. Discussions with this group is designed to convince these holders to hold their securities until maturity rather than dumping them in the market at marked down prices. Talk of an Irish default has accelerated this process in recent months. Ireland will have a tough job re-establishing its credentials as a good credit risk, but Mr Corrigan's team - including key executives Oliver Whelan and economist Rossa White - will be seeking to emphasise Ireland's recent bank stress-test exercise and the country's improving competitiveness.
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FED SEEKS ANNUAL US BANK STRESS TESTS - The Federal Reserve wants to subject US banks to annual capital tests, reserving the right to veto dividend pay-outs if they do not pass. A draft of the new rule is set to be approved by the Federal Reserve Board and put out for public comment within weeks. Bank executives told the Financial Times that they have begun discussing the proposal with Fed officials, who remain wary of a return to the over-generous shareholder pay-outs that left financial institutions under-capitalised during the crisis. Stress tests conducted by the Fed in 2009 helped rebuild confidence in the battered US financial system. In March, the central bank reviewed capital plans submitted by the country's 19 largest lenders. The Fed signed off on a series of dividend increases and stock buybacks from many of the biggest US banks, while prompting others - including Bank of America - to acknowledge they would have to resubmit capital plans rejected by the regulator. Enforcement of annual reviews would likely scotch bank investors' hopes for robust dividend payments and aggressive stock buy-backs.
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BERNARD MADOFF'S WINES AND SPIRITS GO UNDER THE HAMMER - His victims may find they have a bitter note, but many will relish the chance to sample the fruits of disgraced financier Bernard Madoff's cellars when his wine and spirit collection goes under the hammer on Wednesday. The Guardian says that bidders will be able to bid on lots ranging from a case of 1996 Chateau Mouton-Rothschild, valued at between $3,200 (£1969) and $3,800, to mini-bottles of Bombay Dry Gin, Grand Marnier and Smirnoff vodka. The online auction is expected to raise between $15,000 and $21,000. The proceeds will go to the victims of a fraud scheme that investigators say helped fund Madoff's gold-plated lifestyle, including expensive cars, boats and homes in Manhattan, New York's Long Island, Palm Beach in Florida, and Cap d'Antibes in France. Madoff's wines were seized by the US marshals service, which often auctions seized property to benefit crime victims. An auction last November of Madoff's furniture, monogrammed clothing and other personal effects raised about $2m. US marshals have also announced that they will be holding a live auction of the contents of Madoff's former mansion in Palm Beach on 4 June.
