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Fitzpatrick resigned as chairman for AIB when his secret loans became public knowledge.
Ever since then FitzPatrick has been arrested 3 times, questioned about his financial irregularities, and released. The Anglo Irish Bank was a bank with its headquarters located in Dublin, Ireland. It was founded in 1964, it began as a small time operator and grew to be the 3rd largest bank in Ireland. In 2005, the company’s annual profits were over €500 million and its stock price was €17.6 at its peak in 2007. At its peak, The Anglo Irish Bank was worth over €13 billion The Hidden Loans For 8 consecutive years, Sean FitzPatrick had borrowed a total of €87 million from Anglo Irish. Fitzpatrick borrowed twice as much as the amount that was borrowed from AIB by all its 12 executives. Fitzpatrick had not been caught for 8 years because he had transferred the money into one of AIB's rival dealers, The Irish Nationwide Building Society. Because of this, auditors did not suspect anything for years. Sean Fitzpatrick was largely responsible for the entire scandal. Lar Bradshaw, the non-executive director shared the loan with Sean Fitzpatrick. However FitzPatrick did not inform Bradshaw of the transfers he made with the borrowed money. After the €87 million loan became public knowledge, of David Drumm the CEO, and Lar Bradshaw resigned. This caused heavy investigation by the government of Ireland on the Anglo Irish Bank. Over the next few weeks, many other executives resigned, and AIB's stock price dropped and so did its profits. It is unknown whether some executives of the Anglo Irish Bank had knowledge of Sean Fitzpatrick’s borrowed money. Thus, so far only Sean FitzPatrick can be held responsible. The situation that Sean Fitzpatrick and AIB created had caused AIB to be on the brink of collapse. As a result many people who have invested their life savings into the bank could not retrieve their money. To prevent the collapse of Ireland's 3rd largest bank, the government of Ireland stepped in and nationalized AIB. The government of Ireland was now AIB's largest shareholder. The Irish Nationwide Building Society (another Irish Financial Institution on the verge of collpasing) was merged with AIB in 2011 to from the Irish Bank Resolution Company. This act was done by the Republic of Ireland to prevent the collapse of both banks, and ensure that the people wouldn't lose all their money and to erase the negative references associated with both companies. AIB went on to operate as The Irish Bank Resolution Company until Febuary 2013. The Republic of Ireland sold off all of IBSC's assets and laid off the employees. Consequences Thousans of employees of AIB, including the executives lost their jobs as a result of the Nationalization of AIB
Many people who invested their life savings in AIB, could not retrieve them
The Controversy started the Irish Banking Crisis which was an incident where a string of Irish Banks asked for government assistance and revealed that they engaged in risky lending practices. As a result of the scandal, FitzPatrick is currently bankrupt, and facing 16 criminal charges and facing FitzPatrick THE END References