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ILP described as "only viable option" for back to back loan, Drumm trial hears

Summary

In a Dublin Circuit Criminal Court hearing, former Anglo Irish Bank executive David Drumm, aged 51, pleaded not guilty to conspiracy and false accounting charges. He is accused of colluding with ex‑bank officials to defraud depositors by falsely claiming Anglo's 2008 deposits were €7.2 billion larger than they were. Drumm also faces a false accounting charge for providing misleading information on December 3 2008. The trial, now in its seventh week, focuses on evidence that Anglo's €7.2 billion transactions with Irish Life & Permanent (ILP) were not fraudulent, as Drumm's former chief executive admits. Key evidence includes recorded phone calls from September 2008 where former liquidity head Ciaran McArdle discusses the back‑to‑back loan with ILP, noting that other funding options had failed and that ILP was the only viable source. The case is before Judge Karen O'Connor and a jury.

Who, what, where, when and why

What: Report matter: ILP described as "only viable option" for back to back loan, 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:

• September 2008 Hearing Or Sentence
• December 3, 2008 Other
• September 29, 2008 Hearing Or Sentence
• September 25 2008 Other
• March 2008 Other
• November 4, 2008 Hearing Or Sentence
• 2018-03-20 Publication

Why: Ciaran McArdle, former head of liquidity at Anglo, told a non-executive director at the bank that except for Irish Life, monies from other banks should be treated as corporate funding "as they're only doing it because of the government guarantee. CNI source report

Case subjects

Places mentioned

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Stage Trial

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Read the original CNI report