Monday 26 September 2016

Anglo senior bonds 'paid off in full', bankers' trial hears

Declan Brennan

Published 19/02/2016 | 02:30

Former Director of Finance at Irish Life and Permanent, Peter Fitzpatrick (63). Photo: Collins Courts
Former Director of Finance at Irish Life and Permanent, Peter Fitzpatrick (63). Photo: Collins Courts

A former bonds portfolio manager with Anglo Irish Bank has told the trial of four senior banking executives that Anglo senior bonds are "all paid off in full".

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Peter Geissel denied a suggestion from lawyers for Peter Fitzpatrick (63), former director of finance at Irish Life and Permanent (ILP), that the bonds issued by the bank in 2008 were ultimately worthless.

Mr Fitzpatrick, along with ILP's former CEO Denis Casey (56); Anglo's former Head of Finance Willie McAteer (65); and John Bowe (52), who had been Anglo's head of capital markets, are accused of conspiring to mislead investors by using interbank loans to make Anglo appear €7.2bn more valuable than it was.

Mr McAteer of Greenrath, Tipperary town, Co Tipperary; Mr Casey from Raheny, Dublin; Mr Fitzpatrick from Malahide, Dublin; John Bowe (52), from Glasnevin in Dublin have all pleaded not guilty at Dublin Circuit Criminal Court to conspiring together and with others to mislead investors through financial transactions to make the bank appear €7.2bn more valuable than it was between March 1 and September 30, 2008.

Mr Geissel said that in 2007 the bank had a €5bn covered bonds programme in the UK with tranches of bonds sold to insurance firms, pension funds, asset managers and large banks in Germany and France.

He told the court that these "covered bonds" were a form of secured funding, secured by the bank and were rated 'AAA' by the rating agencies at the time.

The trial continues before Judge Martin Nolan and a jury.

Irish Independent

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