Former chairman of Anglo Irish Bank , Sean Fitzpatrick, was released from custody Friday, but more arrests are expected in the banking scandal.

Anglo Irish bank made largest banking loss in Irish History and was nationalized after the bank received billions of dollars in government loans.

The former Anglo Irish boss was arrested and is being held at Bray police station in South Dublin.

Fitzpatrick, who was released without charge, was the highest profile banker to be arrested since the Irish banking implosion at the end of 2008, after he concealed illegal loans of up to $165 million.

The police are investigating the lodgment of $11 billion in short term deposits by Irish Permanent into Anglo Irish bank in the year 2008.

The police are also investigating the "golden circle," which was a group of ten property tycoons that bought up to 10 per cent of the bank with Anglo Irish bank loans.

Police seized a computer and a large amount of documents when they raided Fitzpatrick's home yesterday.

The police have warned that the investigation is very complex and it will be some time before official charges are brought anyone under investigation.

Solicitor Michael Staines is a former chief executive of Anglo Irish Bank and represents the disgraced banker.

Speaking to the Irish Times Minister for Finance Brian Lenihan said there was "an extensive police investigation underway" and said he has "been cautious not to prejudice that investigation and am eager to see justice take its course."

Last week Anglo Irish bank issued legal proceedings to recoup over $100million in "inappropriate and unacceptable loans" from Fitzpatrick.