State examines the legality of FitzPatrick loans

THE Office of the Director of Corporate Enforcement has wide-ranging powers to investigate allegations of misconduct against the directors of companies as it launches an examination of hidden loans at Anglo Irish Bank.

The director, Paul Appleby, is currently examining the background to the scandal which erupted over the revelation that former Anglo Irish Bank chairman, Seán FitzPatrick, had taken out loans worth more than €129m million at one stage, without disclosing the information to shareholders, and which had been kept “off the books” of the bank.

Similar investigations are also been carried out by the Irish Stock Exchange and the Financial Regulator.