Thursday 14 November 2019

Employer Anglo gave Drumm the mortgage for Cape Cod

Emmet Oliver

Anglo Irish Bank granted a mortgage to former chief executive David Drumm for one of his two Cape Cod homes a month after the bank's share price peaked at €17.85.

Mr Drumm, who now lives in Cape Cod, Massachusetts, was granted a mortgage for the property at Watch Hill Way, Chatham, in June 2007, land registry records show. The house was sold last year for about $2.5m (e1.75m), according to media reports.

The mortgage was extended by the bank to Mr Drumm and wife Lorraine in June of 2007 and was discharged later that year.

The land registry documents refer to a "facility'' that can be revised or renewed being provided to Mr Drumm.

The purchase in 2007 came just as the subprime crisis was starting to spread in the US and shortly before rumours start to spread in the market about Anglo's financial position.

However, it wasn't until 2008 that Anglo experienced a savage sell-off on the so-called 'St Patrick's Day massacre'.

The house in Chatham is located at Cross Street and was originally built in 1918. Other media reports suggested the mortgage for the house at Watch Hill Way was first taken out in September 2008. But records clearly show that a mortgage for 11 Watch Hill Way was first taken out in 2007 by Mr Drumm.

Mr Drumm is engaged in a legal battle with his former employers over €8.3m in unpaid loans. The bank last week accepted that Mr Drumm had an "arguable defence'' to its claim.

Irish Independent

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