Drumm forced to take personal budgeting course
Published 03/01/2011 | 05:00
FORMER Anglo Irish Bank boss David Drumm has been forced to complete a personal financial management course by US authorities.
In a humiliating end to a turbulent year for Mr Drumm, the former high-flying banker was required to undergo the course as part of his bankruptcy proceedings in Boston.
Although now working as a financial adviser, Mr Drumm was forced to seek advice on personal budgeting as part of the so-called 'debtor education' course.
He was issued with a certificate on December 27 by the Institute of Financial Literacy to confirm he had taken part in one of its education programmes, the Irish Independent has learnt.
The development starkly illustrates the remarkable turnaround in fortunes experienced by the former chief executive of Anglo Irish Bank, who once earned €2.6m a year.
Mr Drumm (44), who gardai wish to interview over widespread irregularities at Anglo, was required to take the course after filing for bankruptcy last October with debts of €10.26m.
As well as owing €8.5m to his former employers, he also ran up a series of credit card and car loan debts in the months before filing for bankruptcy.
Financial records showed he was living beyond his means, with his monthly expenses, totalling €7,620, exceeding his earnings by €840.
The Dubliner fled to the US after resigning from Anglo in December 2008 when it emerged that directors' loans had been hidden from the bank's shareholders for several years, and set up his own financial advisory firm in Massachusetts.
Despite successfully completing the financial course, Mr Drumm's bankruptcy application is far from a formality and he will face questions from Anglo about his affairs at a meeting being held in Boston this Wednesday.
Lawyers for the nationalised bank say they will ask Mr Drumm if he failed to meet his legal or ethical obligations while running the bank.
They are also expected to question the accuracy of certain financial information provided by Mr Drumm to the bankruptcy courts.
The ex-banker could face a fine of up to $500,000 (€367,000) and/or up to five years in prison if it is proven he gave misleading information.
An Irish accountancy watchdog has already stated Mr Drumm has cases to answer in relation to several events at the bank, including his role in loans to directors, employees and a golden circle of clients.
Files have also been sent to the Director of Public Prosecutions in relation to the golden circle loans and the temporary movement of €7.5bn from Irish Life & Permanent into Anglo to bolster its books.
Mr Drumm had refused to return home to answer questions from gardai.
His mansion in Chatham on Cape Cod was put on sale for $5.5m (€3.9m) a fortnight ago. However, less than half of the proceeds of the sale will go to creditors as Mr Drumm's wife will be entitled to a share.