Lucinda Creighton (Dublin South East, Fine Gael)
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Question 88: To ask the Minister for Finance if his attention has been drawn to reports that in the late 1990s a bank (details supplied) engaged in the practice of overstating the DIBOR base rate to some corporate customers; and if he will make a statement on the matter. [38436/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy will be aware that this matter was highlighted in Anglo Irish Bank's interim accounts for the six months ending 30 June 2010 published on 31 August 2010. I am informed that Anglo have initiated a detailed review which has thus far indicated that, prior to July 2004, a significant number of instances of this issue occurred where the interest rates applying to certain loans were not in accordance with the customer loan documentation. The review has determined that this practice ceased in 2004.

As outlined in the Interim accounts it is not possible for the bank to be definitive on the number of instances or the amount at issue because the review will take up to 12 months to complete given the extensive volume of documentation which needs to be examined.

The bank has informed me that an internal Steering Group has been established to investigate the issue in detail. The Steering Group reports to the CEO and Board Risk Committee. Its work will be independently reviewed and verified by external accountants. In addition to determining with detailed accuracy the amounts relating to affected corporate borrowers, the Steering Group is investigating what happened, how this happened and where responsibility lies.

Both my Department and the Central Bank were notified as soon as this issue came to light. The Central Bank is being briefed on the review as it progresses.

As the review progresses, the Bank will communicate with all customers impacted and will ensure that redress, where appropriate, takes place. The bank has informed me that customers can contact their relationship manager for information.