Tuesday 12 December 2017

John McCabe asked all "relevant questions" in loan for shares deal, court told

High profile business gives evidence at Anglo trial

From left, William McAteer; Sean Fitzpatrick and Pat Whelan
From left, William McAteer; Sean Fitzpatrick and Pat Whelan
Sarah Stack

Sarah Stack

The Financial Regulator was anxious that a loan for shares deal was "done" at Anglo Irish Bank, a court heard.

Developer John McCabe told the trial of three Anglo executives that he took part in the plan because he was anxious to help a bank that had been very good to him for years.

He said he and his son met Anglo's "head lender" Pat Whelan and then chief executive David Drumm at the bank's headquarters in July 2008 and explained four or five investors were needed to buy a 10pc stake held by a large investor.

""We asked all the relevant questions," said Mr McCabe.

"Was it legal? I was told it was totally legal.

"Who was aware of it? I was told the Financial Regulator was aware of it, the Central Bank, the Department of Finance and MOPs. And that the Financial Regulator was anxious to get it done."

Anglo's former chairman Sean FitzPatrick (65) from Greystones, Co Wicklow, former chief risk officer William McAteer (63) from Rathgar in Dublin and 51-year-old Pat Whelan, from Malahide, in Dublin, have all pleaded not guilty to 16 charges of unlawfully providing financial assistance to individuals for the purpose of buying shares in Anglo Irish Bank in 2008.

Mr Whelan, managing director of lending (Ireland), also denies seven charges of being privy to the fraudulent alternation of a loan facility letter.

The bank's former chief executive, Mr Drumm, is in the US and is not on trial.

Mr McCabe is the fifth member of the Maple 10 - 10 high profile customer chosen to lend €60m to buy shares in the bank - to give evidence at the trial.

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