The Irish Division of the Bank of Scotland has appointed a new chairman to take over from the former Sinn Féin vice-president, Phil Flynn, who resigned from the post last night.

Mr Flynn had business connections with Ted Cunningham, who was arrested during the ongoing money laundering investigation.

He said he stood down to protect the bank but denied any wrong-doing.

The new chairman is Sir Ron Garrick, the Deputy Chairman of the bank's parent company HBOS plc.