Gaybo says Anglo shareholders relied on assurances from board
Published 12/05/2011 | 05:00
VETERAN broadcaster Gay Byrne has welcomed an investigation by the Director of Corporate Enforcement and the garda fraud squad into potentially misleading public statements issued by Anglo Irish Bank in 2008.
Earlier this week, it was revealed in the High Court that the joint criminal probe was investigating whether the State-owned bank communicated false or misleading information in certain public statements in 2008 as its share price plummeted.
If the statements were found to be false or misleading, shareholders and others who relied on the statements could sue for compensation under EU transparency laws governing reporting requirements for listed companies.
Last night Mr Byrne said that he and many other people who held shares in Anglo had relied on statements by the bank in 2008 that it was sufficiently capitalised.
"I remember listening to David Drumm on radio saying that the bank was robust and the bank denied all of the rumours that it was not in difficulty," said the former chat show host.
"We relied on those statements in good faith and I am all in favour of any prospect of compensation for shareholders. But I wonder, if there is no money, what is the point?"
Earlier this week, it was confirmed in the Commercial Court that Anglo is being investigated for potential breaches of the 2007 Transparency Regulations.
The regulations provide a right of compensation for the publication of false or misleading statements and could result in Anglo being liable to pay damages if it is found to have issued misleading public statements.
Anglo is being investigated by five separate bodies.