Wednesday 19 December 2018

Drumm trial told trade was 'very unusual'

Dublin Circuit Criminal Court (Stock photo)
Dublin Circuit Criminal Court (Stock photo)
Andrew Phelan

Andrew Phelan

An Irish Life dealer has said the size of a stg£978m trade with Anglo Irish Bank during the 2008 financial crisis was "very unusual."

Seamus Magner, then-head of trading at Irish Life Investment Managers, told a jury he was called in to an "impromptu meeting" hours before the transactions were carried out and told of the details.

Mr Magner was giving evidence in the fraud trial of Anglo's ex CEO, David Drumm.

Mr Drumm (51) is pleading not guilty to conspiring to defraud Anglo investors by dishonestly creating the impression that the bank's customer deposits were €7.2bn 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, Denis Casey, and others.

The case centres on a series of interbank deposits which circulated between Anglo and ILP in September 2008.

At Dublin Circuit Criminal Court, Mr Magner told Sinead McGrath BL, prosecuting, that he managed the centralised dealing desk for the investment arm of Irish Life Assurance.

On Friday, September 26, he was called to an impromptu meeting where he was told there would be transactions in "three separate tranches" of stg£250m, £253m and £475m.

Mr Magner said the sizes of the transactions were "very unusual for us" as "we wouldn't have a sterling book of that magnitude". The trial continues.

Irish Independent

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