Courts / Dublin / Report

Anglo head of liquidity told regulator that €7.2bn transaction wasn't "a real number"

Summary

David Drumm, the former head of liquidity at Anglo Irish Bank, is currently on trial at Dublin Circuit Criminal Court, where he has pleaded not guilty to two charges. He is accused of conspiring with former bank officials Denis Casey, William McAteer, John Bowe, and others to defraud depositors and investors by dishonestly creating the impression that 2008 deposits were €7.2 billion larger than they actually were. Additionally, he faces a charge of false accounting on December 3, 2008, for allegedly furnishing the market with this inflated deposit figure. The trial, presided over by Judge Karen O'Connor, is in its sixth week. On day 40, the jury heard evidence from Ciaran McArdle, who told the financial regulator in a recorded October 2008 call that a €7.2 billion transaction with Irish Life and Permanent was not a real number and that the bank was manipulating its balance sheet for year-end accounts. Prosecutors presented McArdle's statements regarding the nature of the transaction as a repo deal. The matter remains ongoing before the jury, with no final verdict or sentence recorded at this procedural stage.

Who, what, where, when and why

What: Report matter: Anglo head of liquidity told regulator that €7.2bn transaction wasn't "a real number". 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:

• October 1, 2008 Other
• December 3, 2008 Hearing Or Sentence
• September 30 Other
• June 2008 Other
• 2018-03-14 Publication

Why: During the call, Mr McArdle explained that when the snapshot was produced at the beginning of December, it would now look "as good as possible". CNI source report

Case subjects

Places mentioned

Topics

Stage Trial

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Read the original CNI report