Courts / Dublin / Report

Anglo dealer told financial regulator that bank was trying to manipulate it's balance sheet

Summary

The trial of four senior bankers accused of conspiring to mislead investors is ongoing at Dublin Circuit Criminal Court. John Bowe, Willie McAteer, Peter Fitzpatrick, and Denis Casey have all pleaded not guilty to allegations that they used interbank loans to make Anglo Irish Bank appear €7.2 billion more valuable than it was between March 1 and September 30, 2008. The prosecution alleges funds were transferred to Irish Life and Permanent (ILP) and returned as corporate deposits to inflate year-end figures. On day 23, the jury heard testimony from Anglo dealer Ciaran McArdle regarding a call to Financial Regulator Claire Taylor. McArdle stated the bank was "trying to manipulate our balance sheet" and that the boosted customer funding number was "not a real number." He clarified he meant the bank was managing its balance sheet to look its best. McArdle described six transfers of €1 billion to ILP on September 29 and 30, noting the round figure was chosen for operational convenience. He admitted using the phrase "six yards of the funny stuff" in a call to an ILP dealer, describing it as flippant. The jury learned that by the close of business on September 30, Anglo forecast it lacked sufficient funds for next-day payments, prompting a call to the Central Bank. Emergency funding was subsequently received. The matter remains at the trial stage with no finalisation or sentence recorded.

Who, what, where, when and why

What: Report matter: Anglo dealer told financial regulator that bank was trying to manipulate it's balance sheet. Charges or matters: conspiring to mislead investors. Procedural stage: trial

When:

• October 2008 Hearing Or Sentence
• 30 September Other
• March 1st Hearing Or Sentence
• September 30th, 2008 Hearing Or Sentence
• October 1, 2008 Hearing Or Sentence
• September 29 Other
• 2016-02-22 Publication

Why: Asked about his comment that "it's not a real number", the witness said he was trying to explain to Ms Taylor that, because the funding was an inter-bank placement, it would not be included in the bank's liquidity number. CNI source report

Case subjects

Places mentioned

Topics

Stage Trial

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Read the original CNI report