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Anglo trial hears paired transactions could have gone on "forever"

Summary

In the Anglo trial, four former senior bankers—Peter Fitzpatrick, John Bowe, Willie McAteer and Denis Casey—are accused of conspiring to mislead investors by creating a €7.2 billion circular transaction scheme between Anglo Irish Bank and Irish Life and Permanent (ILP) to strengthen Anglo's 2008 balance sheet. The defendants pleaded not guilty. On day 53, the State presented Mark Hunt, a chartered accountant, who argued that the deal had no commercial or economic substance and that the paired transactions—one between Anglo and ILP and a corresponding one with Irish Life Assurance (ILA)—were circular and could have continued indefinitely. Hunt explained that such transactions should have been netted off and omitted from the balance sheet, as they would cancel each other out. He described the scheme as an unusual series of transactions that, if left in the accounts, would have inflated Anglo's assets and liabilities by €7.2 billion.

Who, what, where, when and why

What: Report matter: Anglo trial hears paired transactions could have gone on "forever". Charges or matters: conspiring together and with others to mislead investors through financial transactions between March 1st and September 30th, 2008. Procedural stage: trial

When:

• March 1st Hearing Or Sentence
• September 30th, 2008 Hearing Or Sentence
• January 31 Other
• September 2008 Other
• 2016-04-14 Publication

Why: He said customer deposits were described as "sticky" in banking because they were more reliable and long term than the short-term funding from the money markets. CNI source report

Case subjects

Places mentioned

Topics

Stage Trial

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Read the original CNI report