Wednesday 20 June 2018

Irish Life exec said bosses 'scared sh**less'

Ex-Anglo chief David Drumm. Photo: Collins Courts
Ex-Anglo chief David Drumm. Photo: Collins Courts

Andrew Phelan

An Irish Life executive said senior management figures were "scared sh**less" while trades were being done with Anglo Irish Bank during the 2008 financial crisis, a jury heard.

Irish Life and Permanent's then head of treasury David Gantly told a colleague at the time "the boys" were scared stiff and business would have to be discussed "boss man to boss man".

His taped comments were made after ILP had failed to "return a favour" by lending millions of euros to Anglo. This was separate to an allegedly fraudulent €7.2bn interbank deal being carried out at the time.

The tape was played to the jury in the trial of Anglo's former CEO David Drumm.

Mr Drumm (51) is pleading not guilty at Dublin Circuit Criminal Court to conspiring to defraud by dishonestly creating the impression that Anglo's customer deposits were €7.2bn larger than they were in September 2008.

ILP's then liquidity manager Paul Kane was giving evidence yesterday.

Taped phone calls between Mr Kane and officials of both ILP and Anglo were played to the jury setting out how the September 2008 transactions were carried out.

The calls also featured another deal for which ILP had refused to change its credit limits. Mr Kane was heard explaining this to his counterpart in Anglo, Ciaran McArdle, and his own superior Mr Gantly.

On September 29, 2008, Mr Kane was heard telling Mr Gantly: "Anglo effectively are short" and "looking to borrow ¤500 off us."

Mr Kane was then heard speaking to Mr McArdle.

"I'm shocked here," Mr Kane said, telling Mr McArdle he had tried but failed "to get these guys to f**king lend a 100 to yous."

The jury heard Mr Kane reporting back to Mr Gantly, who said: "I just had a session with Denis [Casey] like and Peter [Fitzpatrick], and the boys are scared sh**less."

The trial continues.

Irish Independent

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