Davy Continues to Face Pressure After Top Executives Step Down
(Bloomberg) -- Top Irish securities firm Davy should be cut out of state deals while questions continue to linger over a scandal which cost some of its top executives their jobs, Sinn Fein, the biggest opposition party, said.
The nation’s debt office should exclude the firm, a primary dealer, from the March 11 sale of as much as 1.5 billion euros ($1.8 billion) of government debt, Pearse Doherty, Sinn Fein’s finance spokesman Sinn Fein, said on Monday.
The state and the National Treasury Management Agency has “no choice but to cut all ties with the firm” until there is a “root and branch review” of Davy, Doherty said.
Davy Chief Executive Officer Brian McKiernan resigned along with deputy chairman Kyran McLaughlin and head of bonds Barry Nangle days after regulators accused the company of “provided misleading details” in an investigation into a deal involving 16 staff, including some top executives.
The case involved a consortium of employees buying bonds from a client in a personal capacity, the central bank said, without the customer knowing they were the buyers. Davy was fined 4.13 million euros by the regulator.
Davy chairman, John Corrigan, is a former head of the NTMA.
Irish central bank officials including deputy governor Ed Sibley are set to give testimony to parliament’s finance committee on Tuesday. While their appearance has been long scheduled, they are likely to address the Davy affair.
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