Friday 17 November 2017

What was alleged in court this week:


* The board of Anglo was not told the lender would fund the unwinding of businessman Sean Quinn's secret stake before a loan-for-shares deal took place, the bank's longest-serving board member Michael Jacob, pictured right, said.

* Mr Jacob, who served on the board for 21 years, described Mr Quinn as a "loose cannon" who had invested in Anglo for the purpose of "a financial gamble".

* Property developer Brian O'Farrell – one of the so-called Maple 10 – was told by David Drumm he would be a friend to the bank if he took park in the loan-for-shares deal.

* Five plans to save Anglo failed before the Maple 10 investors were chosen, including Project Sleeve and Operation Dribble.


* Matt Moran, Anglo's former chief financial officer, began giving four days of evidence after being granted immunity from prosecution.

* Mr Moran confirmed he tried to sell his shares in Anglo in the summer of 2007, when he sold his shares in other banks, but was encouraged to buy more as a sign of confidence in the lender.

* David Drumm "gestured the thumbs up" when he said he had spoken to the financial regulator about the Maple 10 deal.

* Competition from other banks – and a fear that that Anglo would "lose business" to rivals – led to the dilution of personal recourse on loans to some borrowers.


* Sean FitzPatrick regretted not being more personally involved with the Maple 10 loan-for-shares deal transaction, Mr Moran said.

* The Financial Regulator did not advise or approve the so-called Maple 10 deal to unwind businessman Sean Quinn's secret stake in Anglo, a letter shown to the jury showed.

* Con Horan, second in command at the regulator's office, raised concerns over the level of lending to the Quinn family on a conference call the weekend prior to the deal was executed.


* David Drumm raised the possibility of there being a "legal issue" under the 1963 Companies Act over lending money to buy its own shares four months before the Maple 10 deal.

* The Financial Regulator wanted any reference to it removed from any agreement between the bank and Sean Quinn.

* The bank expected the regulator to raise a flag if there was an issue with it lending money to the Quinns to buy shares.


* The Financial Regulator would be able to plausibly deny being part of a loan-for-shares deal between Anglo Irish Bank and Sean Quinn (pictured below) by not appearing "above the water line", it was claimed.

* The regulator's office did not approve a plan to lend the Quinns' money in March 2008 to buy shares, but it did not object to it either and requested to be removed from a draft agreement drawn up between the parties.

* The regulator's office was also putting "extreme pressure" on the bank to finalise an agreement to unwind Mr Quinn's 29pc stock built up through contracts for difference and expressed "huge disappointment" when that plan fell through.

Irish Independent

Promoted Links

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

Promoted Links

Editor's Choice

Also in Irish News