Monday 23 April 2018

€7bn loan to Anglo sought on Drumm's direction, trial told

David Drumm: Court told he directed approach to Irish Life and Permanent. PA
David Drumm: Court told he directed approach to Irish Life and Permanent. PA

Declan Brennan

A former Anglo director has told the trial of four senior bankers accused of conspiring to mislead investors that he was acting under the direction of his former CEO David Drumm when he approached Irish Life and Permanent (ILP) about an interbank loan of €7bn.

The four men, including former ILP CEO Denis Casey and Anglo Irish Bank's former head of finance Willie McAteer, are accused of conspiring to mislead investors by using interbank loans to make Anglo appear €7.2bn more valuable than it was.

Mr McAteer (65) of Greenrath, Tipperary town, and Mr Casey (56), from Raheny, Dublin, are on trial alongside Peter Fitzpatrick (63) from Malahide, Dublin, who had been ILP's former director of finance, and John Bowe (52) from Glasnevin in Dublin, who had been Anglo's head of capital markets.

They have all pleaded not guilty at Dublin Circuit Criminal Court to conspiring together and with others to mislead investors through financial transactions to make the bank appear €7.2bn more valuable that it was between March 1 and September 30, 2008.

The trial resumed in evidence before the jury yesterday after six days of legal argument when Diarmaid McGuinness SC, defending Mr Bowe, continued his cross-examination of Matt Cullen, the former director of treasury at Anglo.

Mr Cullen said that during a meeting with David Drumm, the then CEO of Anglo, Mr Drumm asked him if he would approach ILP "to ask Irish Life for six or seven billion for us in September".

He said he was sitting beside Mr Drumm and he was specifically asked to approach David Gantley, his counterpart at ILP.

Asked if he was "acting under Mr Drumm's direction" the witness replied "absolutely".

Mr Cullen previously testified that the scheme to raise "six or seven billion" in corporate deposits involved money being transferred by Anglo to ILP.

It would then be put back on deposit by Irish Life Assurance (ILA), the non-banking entity owned and managed by ILP, so it would appear in Anglo's accounts as a corporate deposit.

The corporate deposits figure was for publishing in the bank's full year accounts, when the money would be seen as deposits coming in from ILA.

The trial continues.

Irish Independent

Today's news headlines, directly to your inbox every morning.

Editor's Choice

Also in Irish News