CommentAIB has taken an important step in trying to deal with the overcharging saga by appointing Mr Laurie McDonnell, the former comptroller and auditor general, to investigate.
Ireland's largest financial institution is thus due another few weeks in the spotlight.
However, the more important long-term "PR" issue for the sector - and for the Irish Financial Services Regulatory Authority (IFSRA) - may have emerged as a by-product of the current controversy. It is the large number of people who feel they have been short-changed in purchasing investment products from the financial institutions.
This is an issue for all the main financial groups, who now seek to make significant income "cross-selling" investment products managed by other parts of their group to bank customers.
RTE's Liveline has seen a string of complaints this week, many from elderly listeners, and The Irish Times reported that the Ombudsman for Credit Institutions was receiving increasing complaints in this area. Significantly, he has achieved repayments for some of those who complained, in cases where he felt financial institutions did not warn clients about the risk, or pushed them into unsuitable products. It is understood that some of these repayments were substantial - running into tens of thousands of euro.
The high level of complaints now surfacing reflects the poor performance of financial markets in recent years. Typically, the complainants moved funds out of low-yielding deposits in 1998-99 and into fixed-term bonds which were tied to the stock market, some of them carrying considerable risk. These performed dreadfully in the bear market which ended last year.
Central to the argument is whether the investors went in with their "eyes open" or whether the banks acted inappropriately. A key issue is that many bank staff are now given greater incentives to sell investment products.
The issue for the regulator is to put in place appropriate rules in this area - which are now being worked on and will be similar to those governing brokers. But it is a much more complicated issue than ensuring the correct charges are levied - and one which has much bigger financial implications for the customer.
