Anglo lent Seanie son $50k after the bailout
David FitzPatrick bought New York apartment for $1.265m
Published 11/04/2010 | 05:00
Sean FitzPatrick's son received a $50,000 (€37,048) loan from Anglo Irish Bank seven months after the struggling institution was bailed out by the State, the Sunday Independent has learned.
David FitzPatrick -- who is still an employee of Anglo Irish Bank's US operation -- secured the loan against his home, a one-bed apartment in New York's Greenwich Village, which he purchased for $1.265m (€937,315) on October 1, 2008.
There is no indication given in any of the records that the then 28-year-old banker's initial acquisition of the 513 sq ft property in the exclusive Pear Street Condominium was funded through the provision of a mortgage.
Interestingly, the $1.265m purchase came less than 24 hours after the Government here announced the introduction of the €400bn deposit guarantee scheme, a move which is now widely held to have been precipitated by the implosion of Anglo and the threat it posed to the survival of the Irish banking system.
ANGLO-QUINN DEAL IS DEAD, SEE BUSINESS
Records relating to David FitzPatrick's $50,000 loan with Anglo Irish Bank, filed with the Land Registry in Manhattan, further reveal how the state-owned institution was affording him a massive $1.257m (€931,387) line of credit at the time of the loan's draw down on May 20 last year. Official filings show the loan as being "co-equal" with the "other mortgage" that secures Mr FitzPatrick's "maximum principal indebtedness" of $1.257m.
News of David FitzPatrick's borrowings and generous credit facilities from Anglo is sure to provoke anger among a public now being forced to carry the burden of the bank's boom-time speculation.
Only two weeks ago, Finance Minister Brian Lenihan shocked the nation with his commitment to hand over €8bn of taxpayers' money to Anglo for its recapitalisation -- on top of the €4bn already given to the ailing institution in 2009.
Addressing the Dail on the issue of the transfer of the first tranche of developers' loans from the banks to the National Asset Management Agency (Nama), Mr Lenihan further warned of the prospect that the State could yet be called upon to inject an additional €10bn into Anglo to secure its future.
David FitzPatrick's completion of the purchase of his $1.265m New York pad on October 1, 2008, is also worth noting when viewed in the context of his father's now-infamous interview with Marian Finucane on RTE Radio 1 in the days after the introduction of the State's €400bn deposit guarantee scheme.
Asked on the morning of October 4, 2008, if he would apologise for what had happened in the Irish banking system, the disgraced former Anglo chairman said: "The cause of our problem was global, so I can't say sorry with any type of confidence, sincerity and decency. But I do say a very genuine thank you because that is right."
While David FitzPatrick can hardly be blamed for his father's professional or personal behaviour, it is worthwhile noting that his borrowing facility with Anglo is recorded in New York's Land Registry as being part of an overall credit agreement of €87m with the FitzPatrick family, namely Sean FitzPatrick, his wife Catriona, his other son Jonathan and daughter Sarah.
According to the records, this €87m facility was signed off on February 4 of last year, three weeks after Anglo Irish Bank was nationalised.
Closer to home, David FitzPatrick is also directly involved with his father through the joint ownership of property here in Ireland.
Records held at the Registry of Deeds here show that David and Sean FitzPatrick jointly purchased a luxurious two-bedroom apartment at Kelston Hall in Foxrock, Co Dublin, in July 2004, availing of a mortgage with First Active Building Society.
The records further reveal how father and son managed to clear the mortgage in its entirety just seven months later on February 23, 2005.