AIB IS closing a division of its US business with the loss of 30 jobs.
The bank has decided to wind down its US-based AIB Capital Markets Allied Irish America (AIA) operation following a recent review of its activities.
AIB confirmed yesterday that it was winding down AIA. It blamed the “extremely difficult prevailing economic climate” for the decision.
“The business, which focuses on the not-for-profit sector, employs 30 people and is based primarily in New York,” a statement from an AIB spokeswoman said.
“It is envisaged that staff will leave on a phased basis over the coming 12 months.”
The “not-for-profit” sector includes charities, religious orders and groups, organisations involved in providing education and healthcare, social and cultural bodies and municipal organisations.
AIB’s clients have included the University of San Francisco, University Physicians Incorporated and the City of Long Beach, California.
It is understood that the decision to close down the not-for-profit advisory business was made relatively recently.
AIB is continuing with its other operations in the US, which include a corporate treasury business.
The bank is moving offices from Park Avenue to a new premises at 1166 Sixth Avenue, which is partly-owned by US real estate entrepreneur Edward J Minskoff.
AIB said recently that it is moving because the lease is up on its Park Avenue premises and the building on Sixth Avenue is more suitable, as it will be able to contain all activities on just one floor.
They are spread out between a number of floors in its current premises.
The bank said recently that it will be paying the same rent for its new premises as the old, but the taxpayer-controlled institution refused to say how much rent it is paying.
The group is selling its stake in US bank MT for €900 million as part of the Government’s overall recapitalisation plan for the troubled financial institution.
Taxpayers will end up with a 90 per cent-plus stake in the bank in return for the €3.5 billion that they are pumping into AIB to plug the gap in its balance sheet left by its property lending activities during the boom.
AIB was worth about €356 million at the close of business on the Dublin market last night. Its shares were down almost 20 per cent yesterday at 33 cent.
