Irish Life chief bows to pressure from Lenihan
Casey finally falls on sword in scandal over Anglo loan deal
Finance Minister Brian Lenihan pictured yesterday after being told of the resignation of Irish Life and Permanent chief executive Denis Casey.
Related Articles
'This is an essential first step in repairing the reputational damage done to the Irish financial system by this transaction'
Irish Life & Permanent boss Denis Casey caved in to intense political pressure last night and stepped down from his position over the Anglo Irish Bank deposits scandal.
His decision to quit brings to three the number of top IL&P executives who have fallen on their swords since the early hours of yesterday morning over the controversy.
Finance Minister Brian Lenihan hauled Mr Casey and Irish Life & Permanent chairwoman Gillian Bowler before him on Thursday to question them about the group's €4bn deposit in Anglo on September 30 -- the day of the €440bn government guarantee.
It emerged this week that the transaction was used to flatter Anglo's weakening deposit base on the final day of its financial year. In all, IL&P had €7.3bn lodged with Anglo that day -- making up 14pc of the bank's entire €51.5bn deposit base.
It is understood Mr Lenihan made it clear that he expected Mr Casey to tender his resignation as the life assurance and banking group entered a crisis board meeting that evening.
The eight-hour session was attended by all but two non-executive directors, Roy Keenan and Eamonn Heffernan, who were abroad. Mr Keenan participated via conference call.
IL&P announced shortly before 3am yesterday that it had accepted, with regret, the resignations of group finance director Peter Fitzpatrick and head of group treasury David Gantly.
Both were involved in deposit placements with Anglo which, it emerged yesterday, went at least as far back as last March.
On learning yesterday morning that the board of Irish Life had declined to accept Mr Casey's offer to resign, Mr Lenihan called Ms Bowler and a number of other directors back to his office in Upper Merrion Street.
But before they reached the Department of Finance, Mr Casey (48) had informed the board that he wished to step down.
The chief executive, who was in the role less than two years, having joined Irish Life in 1980, said he had reflected on the situation with his wife and family overnight.
He came to the decision that his continued involvement would only distract from the group's efforts to navigate the market turmoil.
He will remain as acting group chief executive for a transition period until a successor is found.
Regret
Ms Bowler said she accepted his resignation with "utmost regret".
"Denis Casey is a man of the highest integrity and honour. I have always held him in the highest regard as a colleague and as a friend and I know that his decision today -- as always -- has been prompted by his dedication and loyalty to the company."
Mr Lenihan welcomed the resignation, saying: "This is an essential first step in repairing the reputational damage done to the Irish financial system by this transaction."
The three IL&P resignations bring to 12 the number of top figures in Irish banking to walk the plank as corporate governance issues continue to emerge surrounding the newly-nationalised Anglo Irish Bank.
Former Anglo chairman Sean FitzPatrick was forced to resign in late December when it emerged he hid up to €122m of bank loans from shareholders over the course of eight years.
- Joe Brennan
