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€7.2 billion transaction had no commercial substance, Drumm trial told
Summary
During the 13th week of David Drumm's trial at Dublin Circuit Criminal Court, a jury heard that a €7.2 billion transaction between Anglo Irish Bank and Irish Life and Permanent had no commercial substance because Anglo's asset profile did not change. Dan Taylor, a chartered accountant from BDO London, testified that the purpose of the transactions was to inflate Anglo's year‑end balance. Taylor explained that the circular nature of the deals could have continued indefinitely, limited only by the time banks' payment systems could process them. He observed that the loans appeared unsecured, with no underlying security or contract between the banks, a situation not uncommon in interbank transactions. Drumm, aged 51, admitted the transactions occurred in 2008 but denied they were fraudulent or dishonest. He remains not guilty of conspiracy to defraud and of false accounting for the 2008 deposits. The case proceeds before Judge Karen O'Connor and a jury of ten men and four women.
Who, what, where, when and why
What: Report matter: €7.2 billion transaction had no commercial substance, 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 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:
- December 3, 2008 Hearing Or Sentence
- 2018-05-01 Publication
Why: 2 billion transaction between Anglo Irish Bank and Irish Life and Permanent had no commercial substance because Anglo's asset profile did not change, a jury has heard. CNI source report
Case subjects
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
Topics
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