Davy have claimed none of the 16 people involved in a 2014 bond deal which resulted in the brokerage being handed a €4.1 million fine from the Central Bank are now working for the firm.
On Monday evening, Davy announced it had closed its bond desk, resulting in four redundancies.
The paper reports the four people made redundant following the decision were Anthony Childs, who was a director of bonds at the brokerage, Barry Murphy, Eamonn Reilly and Stephen Lyons. “They were all involved in the 2014 trade, according to sources,” reports The Irish Times.
Earlier, the National Treasury Management Agency (NTMA) had revoked the firm’s status as the Irish Government’s primary bonds dealer.
The NTMA said it had “reached its decision based on its assessment of the very serious findings relating to the firm that were made by the Central Bank of Ireland last week and following engagement with investors in Irish Government debt over recent days.”
Minister for Finance Paschal Donohoe said the NTMA made an appropriate decision “given the recent very serious findings” by the Central Bank.
The agency said its primary concern is to maintain the reputation of Ireland as a “sovereign issuer in the bond market and the orderly functioning of the market for Irish Government debt”.
“In this context, the NTMA believes that the behaviour described in the Central Bank findings falls substantially short of the standards expected from market counterparties, peers and colleagues in the bond market and is potentially damaging to Ireland’s reputation as a sovereign issuer,” the agency added.
Davy interim chief, former AIB chief executive, Bernard Byrne, promised staff on Monday the firm would take action to address the matter, opting to hire an outside company to carry out an independent review following the Central Bank’s findings.