Anglo probe intensifies amid fresh revelations
Government-appointed directors in Anglo are investigating how several billion in deposits from Irish Life & Permanent found their way into Anglo before the end of its financial year.
Just how those deposits affected the accounts at Anglo Irish is the subject of a major investigation by the financial regulator and independent directors of the bank.
RTÉ reported last night that volatility in deposits in Anglo Irish Bank was one of the reasons the Government moved to nationalise the bank. The massive inflow of funds boosted the bank’s deposit base and would have made its balance sheet look significantly healthier than was the case in reality.
Leo Varadkar, Fine Gael’s spokesman on enterprise trade and employment, hit out last night at the latest scandal the nationalised bank now finds itself in.
“This latest news about the practice of a golden circle at the top of Irish society feeds the fears of all of us who expressed grave concerns about the crisis in our banking sector, and will do further damage to Ireland’s international standing,” he said. It confirms the regulatory and management failures that brought Anglo Irish and the banking system to this crisis point, he said.
“That is why Fine Gael and others are demanding that we have full clarity on what will be expected of taxpayers in the full recapitalisation scheme, and why Fine Gael leader Enda Kenny has sought and received a meeting with the Taoiseach,” he said.
Last night, IL&P denied any wrongdoing. It said: “Irish Life & Permanent plc confirms that it provided exceptional support to Anglo Irish Bank during September 2008 and in particular on September 30, 2008 following the introduction of the government guarantee scheme.
“During a period of unprecedented turmoil in global financial markets there was an acceptance that financial institutions would seek to provide each other with appropriate support where possible.”
The investments in Anglo “were fully and appropriately accounted for in the books and records of Irish Life & Permanent and in our regular reports and returns to the Financial Regulator”, it added.
Several probes areunder way at the state bank including how the former chairman Sean FitzPatrick successfully hid €87 million of borrowings from shareholders over eight years.
That disclosure forced the resignation of Mr FitzPatrick and of fellow director Lar Bradshaw and also cost former chief executive David Drumm his job.
Investigations are also ongoing into how a number of businessmen bought for €300m, 10% of Sean Quinn’s 25% stake in Anglo. The money to buy the shares was put up by Anglo and secured against shares that are worthless.
