Courts

Wednesday 23 July 2014

Timeline: from crisis to chaos to collapse

Published 18/04/2014|02:30

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June 1, 2007 – Anglo shares peak at €17.53.

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September 11, 2007 – Sean Quinn admits to Anglo Irish Bank CEO David Drumm and chairman Sean FitzPatrick that he has built up a secret 24pc stake in Anglo using Contracts for Difference (CFDs).

November 2007 – €150m in "working capital" is advanced by Anglo to Quinn to cover losses on the CFDs. Anglo will lend €1.97bn in six separate tranches to fund Quinn's margin calls between November 2007 and July 2008, as the bank's share price plummeted.

February 8, 2008 – PricewaterhouseCoopers – auditors to the Quinn Group – report it to the Financial Regulator, after it discovered funds had been transferred from Quinn Insurance Limited to another Quinn-owned entity to fund Quinn's CFDs.

March 17, 2008 – St Patrick's Day Massacre – Anglo shares plummet 30pc in price as US bank Bear Stearns collapses.

June 27, 2008 – Board of Anglo meets in the Sheraton Hotel, Fota Island Cork – the last meeting before the Maple 10 transaction. Minutes record the executive of the bank had agreed a course of action with the Regulator.

July 9, 2008 – David Drumm rings Con Horan – second in command in the Regulator – to tell him the executives of Anglo had decided to place the shares with "a group of Irish and international investors".

Mr Drumm also rings Mr FitzPatrick who is on holiday in France. Mr FitzPatrick tells gardai that Mr Drumm told him about the plan on July 9, but did not tell him the identities of the 10 borrowers and he assumed it was full recourse.

July 10, 2008 – Anglo starts contacting the Maple 10, travelling to France and Portugal to get holidaying borrowers to sign documents.

July 14, 2008 – Maple 10 deal executed. Anglo loaned the Maple 10 €45m each so they could buy shares in the bank. Another €169m is lent to Mr Quinn's wife and five adult children to buy the remaining stock.

September 15, 2008 – US bank Lehman Brothers collapses, filing for bankruptcy in New York, causing turmoil in the global financial system .

September 29, 2008 – The Bank Guarantee. Irish Government takes an overnight decision to guarantee the banking system, covering customer deposits and banks' own borrowings to a total of €440bn.

October 24, 2008 – Financial Regulator announces record €3.5m sanction against Quinn Insurance Limited. Sean Quinn is personally fined €200,000 and steps down as chairman.

December 18, 2008 – Sean FitzPatrick resigns as Chairman of Anglo.

January 2009 – Pat Whelan prepares a report for Anglo's board on the Quinn-Maple 10 deal. The report repeatedly states that the Financial Regulator was kept "fully informed".

January 7, 2009 – William McAteer resigns from Anglo.

January 9, 2009 – Mr Neary announces he will retire as regulator.

January 21, 2009 – Anglo nationalised after Government passes emergency legislation.

February 24, 2009 – Anglo HQ in central Dublin is raided by the fraud squad.

March 31, 2009 – Anglo reports €12.7bn loss – the biggest corporate losses in Irish history.

September 30, 2009 – Central Bank says Anglo bailout could ultimately cost €34bn.

December 2009 – Whelan, who remained working with Anglo after nationalisation, resigns.

March 18, 2010 – Mr FitzPatrick first arrested and questioned, is released without charge.

July 23/24, 2012 – Mr FitzPatrick, McAteer and Whelan are charged with counts contrary to Section 60 of the Companies Act.

February 5, 2014 – Trial begins.

April 16, 2014 – Mr FitzPatrick is cleared while deliberations continue on the two other men.

April 17, 2014 – McAteer and Whelan found guilty of 10 counts of illegal lending to the Maple 10, and not guilty of giving illegal loans to six members of the Quinn family.

Irish Independent

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