Irish bank boss quits over adult sites

The Irish banking sector was dealt another blow this weekend with the resignation of the chief executive of the Bank of Ireland, Michael Soden.

Mr Soden resigned on Saturday after he admitted breaking company guidelines by accessing internet sites containing adult content. He is also expected to step down from the board of the Post Office, a role he took up after the Bank of Ireland signed a deal with the Royal Mail's retail arm.

A spokesman for the bank said directors would meet this week to discuss Mr Soden's replacement and payoff.

The experienced banking executive said he deeply regretted the embarrassment he had caused the bank by breaching its policies on internet use.

"I have made it a central part of my tenure to set the highest standards of integrity and behaviour and to do so in an environment of accountability, transparency and openness," he said. "I now accept that accessing this material was inappropriate and would cause embarrassment to Bank of Ireland and people who work there."

Irish prime minister Bertie Ahern yesterday said Mr Soden's resignation and a growing scandal at Allied Irish Bank had jeopardised the credibility of the Irish financial industry. "It can't get much worse; just about everything that has come out has been disturbing and upsetting," he said.

This month AIB admitted overcharging foreign exchange customers, earning an estimated €20m over 10 years. It also emerged that more than 500 customers were being charged mortgage insurance without being consulted. Its former chief executive Tom Mulcahy resigned as chairman of state airline Aer Lingus on Saturday after allegations about an offshore tax scheme at AIB.

In his resignation letter Mr Mulcahy insisted he knew nothing of the scheme and was "fully tax compliant", but said the furore was drawing "adverse publicity on Aer Lingus".