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Nyberg report may lead to exits

Investigation is expected to question the tenability of the positions of senior bankers and civil servants, but will come up short of naming names

The publication of the Nyberg report on the banking crisis is expected to be followed by a number of senior-level departures in the Department of Finance.

The report is expected to question the tenability of the positions of bankers and civil servants involved in the sector in the run-up to the crisis who are still in their posts.

Political sources said that a number of departure packages have already been agreed.

Prepared by a commission of investigation led by Peter Nyberg, a former Finnish civil servant, the report does not name individuals.

John Moran, head of wholesale bank supervision at the Central Bank, moved to the Department of Finance two weeks ago, in what is seen as the first step towards a restructuring there. Moran led the Central Bank review of deleveraging the bank sector.

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The Nyberg report, commissioned by Brian Lenihan, the former finance minister, focused particularly on Anglo Irish Bank and Irish Nationwide, but looked at corporate governance and risk management practices at all six government-guaranteed institutions.

It has already been referred by Michael Noonan, the finance minister, to the garda, the Office of the Director of Corporate Enforcement and the Director of Public Prosecutions.

Developments in the reorganisation of the troubled banking sector will continue this week. The Irish Congress of Trade Unions (ICTU) has sought a meeting with Noonan to discuss job losses, with fears that up to 6,000 positions could be under threat.

ICTU is also likely to seek guarantees over the future of Permanent TSB after the planned flotation of Irish Life.

At a briefing last week, Noonan said PTSB could survive as a “smaller and more specialised” third pillar. “It could trade as a small niche bank, taking deposits and offering mortgages, but not the full suite of offerings that the pillar banks will have,” he said. “If it is successful, it could continue, or it could be subject to a takeover by a larger bank.”