Wednesday 16 January 2019

Anglo executive 'shocked' at the tone of regulator

Stock picture: Getty
Stock picture: Getty
Andrew Phelan

Andrew Phelan

A former Anglo Irish Bank executive was "shocked at the hostile and aggressive reaction" from Financial Regulator officials when they met to discuss an interbank deal done at the height of the financial crisis.

Anglo's then chief financial officer Matt Moran said he was surprised at the tone of the "tense" meeting after the bank was bailed out and its CEO David Drumm and chairman Sean FitzPatrick had both resigned.

Mr Moran was being cross-examined in the trial of Mr Drumm, who denies conspiracy to defraud over the €7bn deal.

Mr Drumm (51) is pleading not guilty to conspiring to defraud Anglo investors by dishonestly creating the impression that the bank's customer deposits in September 2008 were larger than they were.

He is alleged to have conspired with Anglo's former finance director Willie McAteer and head of capital markets John Bowe, as well as then-CEO of Irish Life and Permanent (ILP) Denis Casey, and others.

The case at Dublin Circuit Criminal Court centres on multi-billion euro interbank loans which circulated between Anglo and ILP.

Mr Drumm also denies false accounting, by providing misleading information to the market.

Mr Moran yesterday told Brendan Grehan SC, cross-examining, about a meeting at the Financial Regulator around January 12 to 14, 2008.

He said he was asked a number of times by IFSRA official Donncha Connolly "why did the bank do that transaction?".

"I said I believed he was aware, he knew the bank had done the transaction and why the bank had done it."

Mr Moran said: "The meeting was very tense I would say and I didn't go down to that meeting expecting the transaction or what happened to be brought up in such a strong or aggressive manner."

Mr Grehan said: "Suddenly you were being asked questions as if the Financial Regulator knew nothing about the transaction."

"That was the impression given," Mr Moran said.

The trial continues.

Irish Independent

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