But the storm had hit the hardest by the end of 2008 when the bank had lost both its CEO and Chairman on 19th December, 2008. Ireland was shocked by one of its greatest financial scandal which led Mr. Sean Fitzpatrick, Chairman-AIB and Mr. David Drumm, CEO-AIB to resign thereby leaving behind a scar of undisclosed loan to the tune of €87 million. Though it was apparent that these loans didn’t have any illegal intention as well as consequence, the Financial Regulator had observed that the actions that were taken in order to transfer them were inappropriate (Farrell, 2008).
On 15th January, 2009, the Irish Government took the decision not to recapitalize AIB, but to nationalize it (Collins, 2009). On the next day AIB’s shares were shelved and the Government rejected its previous decision of injecting cash to revive the scandal stricken bank (O’Brien, 2009).
At the wake of 2009 AIB had fallen from the status of Ireland’s pride to that of a tainted national scandal. Its woes have continued throughout last year and even in 2010 the bank is struggling with a multitude of wide ranging issues such as serious lack of transparency and legislative complications (Ihle, 2010).
The undisputed strengths of AIB are its rich heritage and corporate experience. The bank should retrospect and continuously learn from itself. Though it has entered into an unfavorable phase, yet owing to its inherent strengths, AIB can reposition itself as the pride of Ireland.
On account of being nationalized AIB has got an opportunity to appease its customers to some extent. It should make optimum use of this chance and implement strategies to reposition itself as a premier financial institution.
The most significant threat that AIB faces in the current situation is that of uncertainty. The bank has lost its credibility and hence will be under constant public vigilance. AIB should adopt