A senior banker with Irish Life and Permanent has told the trial of four banking executives that he was uncomfortable with alleged inter-bank transfers of €7.2bn with Anglo Irish Bank.
Four men, including Anglo's former Head of Finance, Willie McAteer (aged 65) and John Bowe (aged 52), who had been Anglo's head of capital markets are accused of conspiring to mislead investors by using interbank loans to make Anglo appear €7.2bn more valuable than it was.
The interbank loans allegedly involved money being transferred by Anglo to Irish Life and Permanent (ILP) and then being put back on deposit with Anglo via ILP's life assurance division.
The transfer would allegedly appear as corporate deposits and not an interbank loan so the bank's corporate funding figure would appear bigger for the bank's year-end figures on 30 September, 2008.
Peter Fitzpatrick (aged 63), former director of finance at Irish Life and Permanent (ILP) of Convent Lane, Portmarnock, Dublin ILP's former CEO Denis Casey (aged 56) from Raheny, Dublin, Mr McAteer of Greenrath, Tipperary Town, Co Tipperary and Mr Bowe, from Glasnevin, Dublin have all pleaded not guilty at Dublin Circuit Criminal Court to conspiring together and with others to mislead investors through financial transactions between March 1 and September 30, 2008.
At the beginning of week seven in the trial the jury heard evidence from David Gantly, who was head of treasury in ILP at the time.
Mr Gantly told Úna Ní Raifeartaigh SC, prosecuting, that in September 2008 he discussed the nature of the €7.2bn transactions with Anglo with his colleague Barry Bowden.
He said he was discussing his view and how comfortable or uncomfortable he was with the nature of the transaction. He said his feeling was discomfort.
Asked why this was, he testified: “It was non standard”.
He added: “However this was being reported, obviously that was being reported to the Regulator, I was also very conscious of the Green Jersey Agenda and banks being asked what they needed to do and to help each other in what was extreme circumstances”.
The trial continues before Judge Martin Nolan and a jury.