Then the phone rang. His life hasn’t been the same since.
What the Allied Irish Banks chief now refers to as the “famous phone call” came from Susan Keating, who runs AIB’s U.S. subsidiary, Allfirst Financial. She informed him that an Allfirst trader, John Rusnak, had run up huge foreign exchange losses, later found to total about $700 million. When the news broke two days later, AIB shares lost about a quarter of their value and speculation raged about whether Ireland’s biggest bank would go bust or be sold. Buckley, just seven months into his job, offered his resignation (an offer rejected by his board, which includes Padraic Fallon, chairman of Euromoney Institutional Investor, this magazine’s parent company).
More than four months later, AIB stock has recovered, and no one is discussing Buckley’s, or the bank’s, departure. Analysts credit the County Cork native , who early in his life spent two years training for the priesthood , with forcefully and honestly responding to the crisis. “Basically, I had an agenda of taking control of this thing and making sure that we remain in control, which I think we have,” says Buckley, who spent several all-nighters in his Dublin office at the height of the crisis.
There’s still much to be done to restore AIB’s capital and credibility. Buckley must deliver on the recommendations of lead investigator Eugene Ludwig, a former U.S. comptroller of the currency. And AIB’s internal risk controls clearly need a massive overhaul."It’s been the toughest time in my life,” says Buckley. “Luckily, I am blessed with a lot of energy and great colleagues.” He just hopes his 58th birthday celebration is a lot quieter.
