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Anglo loan fraud quiz

THE €169m loan from Anglo Irish Bank to fund Sean Quinn's 15pc purchase of its shares in 2008 was not formally approved by the Financial Regulator.

The loan is now the subject of a criminal investigation by the gardai's fraud squad.

It is understood that after Anglo agreed the loan with Quinn, the Financial Regulator subsequently instructed the bank to deduct the amount of the loan from its capital base.

In the letter the regulator said "it considers it appropriate that Anglo take a deduction from Total Own Funds for the full amount of €169m for solvency purposes until such time as this facility is refinanced".

"It is noted that it is expected to take between two to three weeks before the requisite structures are in place to facilitate the refinancing of this amount," the letter continued.

Anglo sanctioned the loan to the Quinn Group to finance the purchase of the bank's shares in July 2008.



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Sean Quinn and his family have lost close to €3bn since the banking collapse, the bulk of it on his gamble on Anglo.

The €169m loan is part of the €2.8bn owed by Quinn and his family to the now State-owned bank. His gamble on the shares came at a time when the bank was seriously exposed to the property sector.


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