Witness tells of transaction between Anglo and IL&P that increased Anglo's corporate deposits

Witness tells of transaction between Anglo and IL&P that increased Anglo's corporate deposits

When Anglo’s share price plunged in March 2008, its former Director of Treasury says he was asked to find ways to improve its corporate deposits.

Matt Cullen has been giving evidence in the trial of four former bankers accused of misleading investors and depositors in Anglo Irish Bank.

They have all pleaded not guilty to engaging in transactions in 2008 to make the former bank’s deposits look €7.2bn stronger than they were.

They are: Willie McAteer – Anglo’s former finance director, John Bowe, who used to be responsible for funding Anglo, Denis Casey – former chief executive of Irish Life & Permanent and its former group director Peter Fitzpatrick.

Mr Cullen told the jury about a transaction between Anglo and Irish Life & Permanent that resulted in a €750m increase to Anglo's corporate deposits for their half-yearly report.

When Anglo’s shares plummeted in March 2008, Matt Cullen said a decision was made to show a “strong corporate number” for their half-year report. In other words, they wanted the market to see the bank was secure.

He said it was difficult to get funding at the time, and he was asked to approach other Irish banks for help.

He said that led to a back-to-back transaction with Irish Life & Permanent, whereby Anglo transferred €750m that was directed back via Irish Life Assurance as a corporate deposit.

Mr Cullen said Anglo’s Chief Executive David Drumm later asked him to secure a similar transfer of up to €7bn before their end-of-year report, and he subsequently authorised it.

Willie McAteer – Anglo’s former Finance Director, John Bowe, who used to be responsible for funding Anglo, Denis Casey – former Chief Executive of Irish Life & Permanent and its former Group Director Peter Fitzpatrick all deny conspiring to defraud investors and depositors.

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