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Central Bank suggested that banks issue and buy bonds from each other, Drumm trial told
Summary
In a Dublin Circuit Criminal Court hearing, former Irish Life and Permanent chief dealer David Gantly testified about a 2008 Central Bank meeting where senior treasury heads from six major Irish banks were advised to issue bonds that would be purchased by each other to boost market confidence. Gantly said the Central Bank and the Financial Regulator encouraged this practice, noting it was not unusual for banks to support one another on bonds, but the level of support was unusually high. He confirmed that the arrangement was not disclosed to the market. The testimony was part of the trial of David Drumm, 51, who faces charges of conspiracy to defraud Anglo Irish Bank by falsely claiming deposits were €7.2 billion larger than they were. The trial is in its eleventh week before Judge Karen O'Connor and a jury of ten men and four women. David Drumm pleaded not guilty.
Who, what, where, when and why
What: Report matter: Central Bank suggested that banks issue and buy bonds from each other, Drumm trial told. Charges or matters: conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud depositors and investors at Anglo Irish Bank 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:
- November 6, 2008 Other
- December 3, 2008 Hearing Or Sentence
- 2018-04-17 Publication
Case subjects
Defendant
Charges: conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud depositors and investors at Anglo Irish Bank 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
Topics
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