Bank stripped all personal recourse on €450m loans

Anglo Irish Bank stripped out all personal recourse on €450m worth of loans to the Maple Ten group of investors because they had come to the bank’s aid during a difficult time.

Pat Whelan, the former head of lending in Ireland, told gardaí the personal recourse on the loans was reduced from 25% to 0% after Anglo chief executive David Drumm said he felt the bank had an obligation to the investors.

Mr Whelan, one of three former executives on trial, told investigating gardaí the letters were never meant to be sent out to the investors but “a clerical error” led to six being posted.