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Sunday 4 December 2016

Drumm's claims on Anglo Irish collapse labelled as 'ridiculous'

Published 28/11/2011 | 05:00

Claims by disgraced former Anglo Irish boss David Drumm that reckless lending wasn't responsible for effectively collapsing the financial institution in 2009, were dismissed as "ridiculous" by sources close to the bank last night.

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Mr Drumm has insisted he wouldn't be forced to leave the US and that he wouldn't return to Ireland to face accusations because he wouldn't be "treated fairly".

"I am here trying to make a living and raise my family, which I am entitled to do," said Mr Drumm, who is living in Boston with his wife and two children.

"Why would I go somewhere where politicians, senior ministers and even High Court judges have more or less stated that there is a witch-hunt on and 'we are going to get him'? Why would somebody put their family at risk by signing up for that?"

Mr Drumm was speaking in an extensive interview that was published in a Sunday paper here and on a US-based website.

It has also emerged that Anglo didn't proceed with a settlement with Mr Drumm last year over €8.5m in unpaid loans because he failed to provide details to the bank of everything he owes and owns.

The details of the proposed settlement are unclear but the Irish Independent understands that Anglo would have recouped more from that settlement than the net proceeds the bank expects to get from drawn out bankruptcy proceedings in the United States. Mr Drumm declared himself bankrupt in the US in 2010.

Sources have also admitted the legal process in the US is "expensive" but said the bank has a responsibility to pursue debt recovery.

"The bank is consistent," one source said, pointing to the parallels between the Drumm case and efforts to chase €2.8bn of debt related to Sean Quinn and the Quinn Group.

There have been calls for Mr Drumm to return to Ireland to face accusations including fraud.

Allegations

The government-appointed head of Anglo Irish, Mike Aynsley, has also called for Mr Drumm to face the allegations.

The taxpayer has been forced to pump about €30bn into Anglo Irish, now known as the Irish Bank Resolution Corporation.

Mr Drumm also said that he and former Anglo Irish chairman Sean FitzPatrick were aghast to discover that now bankrupt tycoon Sean Quinn had amassed a 28pc stake in Anglo Irish Bank by 2008 through complex investment instruments known as contracts for difference.

Mr Drumm maintains that the extent of Mr Quinn's holding put Anglo under additional pressure in 2008.

The financial watchdog, the Government and the Central Bank were also aware of controversial plans by Anglo to lend over €400m to its top 10 private customers -- mainly developers -- so they could collectively buy out Mr Quinn's stake in the bank, Mr Drumm claimed.

Irish Independent

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