RTE - Today in the Press - Monday August 27
Updated: 09:18, Tuesday, 28 August 2012
The Irish Independent reports that the Financial Regulator has refused to reveal what action has been taken in regard to a serious complaint of liquidity irregularities made to his office in 2007 by a whistle-blowing former banker regarding Unicredit Bank Ireland.
It was alleged that the regulator received details that Unicredit Bank Ireland, an offshoot of Italy's biggest bank, had been operating in the IFSC with liquidity levels vastly below what was required by law.
In addition, Jonathan Sugarman, a former executive with Unicredit Bank Ireland, has consistently claimed that the Irish regulator's office took no action regarding his complaint.
Mr Sugarman was appointed risk manager for Unicredit Bank Ireland back in 2007 when it had an operation worth $50bn (€39.94bn) based in Dublin's IFSC.
Upon assuming the new position, Mr Sugarman claimed to have noticed serious irregularities in the bank's liquidity levels. The bank was required by law to keep assets and cash in reserve equivalent to 90% of its liabilities. Mr Sugarman says he believed Unicredit was operating in Dublin with cover of just 70%. Having called in independent consultants to confirm his fears, he then claims to have raised the matter with his superior at the bank. He says he was told "not to worry."
However, Mr Sugarman resigned his position and claims he then approached the Irish Financial Regulator's office in late 2007 to report the irregularities -- as required by law.