Anglo trial hears of 'turbulence' that followed bank guarantee

Anglo trial hears of 'turbulence' that followed bank guarantee

The trial of three former Anglo directors has been hearing of the turbulence the bank experienced in the wake of the bank guarantee.

Pat Whelan, Willie McAteer and Sean FitzPatrick deny providing unlawful financial assistance to the Maple Ten and members of Sean Quinn's family to buy shares in Anglo in July 2008.

The Maple Ten were lent €45m each to buy Anglo shares.

The prosecution claims the purpose of the loans was to create the appearance of stability in the bank's share price.

The jury has heard the terms of the loans were subsequently amended in favour of the borrowers, so that Anglo would have had no recourse if the share price collapsed.

Michael O'Sullivan, a senior lender at the bank, said his superior Pat Whelan told him the move had been sanctioned by the board but he later concluded this was not so.

He said this led to a heated exchange between him and Mr Whelan in December 2008, a turbulent time post-bank guarantee when executives including Pat Whelan were under extraordinary pressure to secure funding in London, New York, Stockholm and Frankfurt.

Mr O'Sullivan said he was committed to restoring the original terms on the Maple ten loans, and he agreed, under cross-examination, that Mr Whelan shared his position.


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