Sunday 19 November 2017

Drumm said he was 'naive' to ask for €7bn

Cormac McQuinn

Cormac McQuinn

FORMER Anglo Irish Bank boss David Drumm has previously claimed that he was naive to approach the Central Bank for the €7bn bailout.

Mr Drumm outlined his version of the loan request in an interview with Irish-American publisher Niall O'Dowd in which he also claimed that reckless lending wasn't responsible for the failure of the bank.

The €7bn loan is at the centre of controversy after it was claimed by former bank executive John Bowe in the Anglo tapes that "as Drummer would say" he arbitrarily picked the sum "out of my arse".

The recording implies that the bank knew it had no prospect of paying the loan back.

And the discussion made it clear that executives who negotiated with the Central Bank knew the sum would not be enough to save Anglo but it was requested as a strategy to lure the Central Bank into a larger bailout.

OUSTED

Mr Drumm was not at home yesterday when the Irish Independent called to his house near Boston where he has been living with his family since he was ousted as Anglo CEO in 2008.

Previously Mr Drumm told Mr O'Dowd: "So I went (to the Central Bank) and looked for a secure loan that I could have over-collateralised three or four times.

"If they gave me €7bn I could have given them €20bn collateral, or whatever they wanted, and that was the way I put it to them.

"They never gave me answer," he said.

Drumm continued: "They told me that they had €4bn in the system, in a number of pockets.

"There is a naivety to that on my part, because you go down and say: 'Well, we are in a bad place, now we need to go to the Central Bank'.

"But you expect the governor of the Central Bank will say: 'Thank you, I'm glad that you are here, now here's our procedures for this.' But they were clueless, because they were not ready for it," he claimed.

The interview was published on the Irish Central website and 'The Sunday Business Post' in November 2011.

Irish Independent

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