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€7.2bn loans approved "post transaction", Drumm trial hears

Date
2018-02-19
Stage
Trial
Primary locality
Dublin
County
Dublin

Summary

In the first week of David Drumm's conspiracy to defraud trial at Dublin Circuit Criminal Court, the former head of treasury risk at Anglo Irish Bank, aged 51, pleaded not guilty to conspiring with former bank officials to defraud depositors and investors by creating the impression that Anglo's 2008 deposits were €7.2 billion larger than they were. He also pleaded not guilty to false accounting on 3 December 2008. Michael Nurse, a witness, explained that Anglo's treasury credit committee met weekly to approve interbank credit limits, with a fast‑track process requiring only one senior manager's sign‑off for certain transactions. A €1 billion transaction with Irish Life and Permanent on 31 March 2008 was fast‑tracked and exceeded ILP's credit limit by 400 %. The €7.2 billion transaction on 30 September 2008 was approved "post transaction" by Drumm and Willie McAteer, with no signature required at the time.

Who, what, where, when and why

What: Report matter: €7.2bn loans approved "post transaction", Drumm trial hears. Charges or matters: conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud depositors and investors at Anglo by "dishonestly" creating the impression that deposits in 2008 were €7.2 billion larger than they were; false accounting on December 3, 2008, by furnishing information to the market that Anglo's 2008 deposits were €7.2 billion larger than they were. Procedural stage: trial

When:

Why: In addition, Mr Nurse explained that there was a "fast track process" designed to respond in a quicker way to an interbank request. CNI source report

Case subjects

David Drumm

Defendant

Charges: conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud depositors and investors at Anglo by "dishonestly" creating the impression that deposits in 2008 were €7.2 billion larger than they were; false accounting on December 3, 2008, by furnishing information to the market that Anglo's 2008 deposits were €7.2 billion larger than they were (Alleged Or Contested)

Plea: Not guilty

Places mentioned

Court Venue
  • Dublin
  • Dublin Circuit Criminal Court
Secondary Mention

Topics

Stage Trial

Related court reports

Read the original CNI report

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