Anglo Irish Bank chairman Sean Fitzpatrick has resigned over the controversy on the inappropriate loans that was made to the bank directors.

Some 87 million worth of loans approved by Fitzpatrick was uncovered by the Financial Regulator.

He temporarily transferred loans with Anglo to Irish Nationwide over a period of eight years.

The loans was transferred back to Anglo after the year-end date.

The official statement from Fitzpatrick is that he did something unacceptable but however was not illegal.