The Minister for Finance Brian Lenihan met with members of the board of Irish Nationwide at the Department of Finance this afternoon where he was briefed on a request that the management structure at the building society be reviewed.
The meeting took place at 3pm. None of the board members commented to the waiting media as they entered the building.
However, according to Government sources,chief executive Michael Fingleton is expected to step down within days.
A spokesman said that productive meetings were held and the four non-executive directors are to report back to the minister later this week.
Irish Nationwide directors Adrian Kearns and Rory O’Ferrall, who were appointed by the Government under the guarantee scheme, were among those who met the Minister.
Green Party finance spokesman Dan Boyle welcomed the news that Mr Fingleton was to leave his post as chief executive.
"This evening's news follows equally welcome developments regarding the return of Mr Fingleton's bonus," he said.
"The issue of the outgoing Irish Nationwide boss's excessive and unjust pension arrangements remains unresolved, and must now be tackled."
Fine Gael's deputy finance spokesman Kieran O'Donnell also welcomed the news, and said there was "an overwhelming need for proper regulation of the financial sector. He said a radical reform of the sector needed to be put in place as a matter of urgency.
"The regulatory system must have simplified and effective reporting, and there must be clear leadership from the Regulator. These measures are essential to restore faith to Ireland's financial sector," he said.
Last week Mr Lenihan asked Mr Kearns and Mr O Ferrall to convey to the board its composition and the management team must be reviewed in the context of its business plan and skill set.
On Friday Mr Fingleton bowed to pressure and agreed to repay a €1 million bonus he received last November after the introduction of the €440 billion guarantee.
Mr Fingleton said in a statement he would repay the bonus even though he was legally entitled to it.
He was repaying the bonus “because of the effect on his family with a continuing 24-hour media siege on his home and also because of his concern for the effect it may have on the society”, Mr Fingleton said in a statement.
The Green Party has called on Mr Fingleton to resign and also has criticised Mr Fingleton’s pension arrangements which mean he is the sole beneficiary of a €27.6 million pension scheme transferred out of the society to another retirement benefit scheme in January 2007.
It also emerged last week that Irish Nationwide’s board member Danny Kitchen had declined an offer to replace Mr Fingleton after the Government capped the salary for the position at €360,000 a year.