FitzPatrick knew of Maple Ten loan plan

Former Anglo Irish Bank chairman Seán FitzPatrick told gardaí he was aware the bank would be lending money to the Maple Ten group of investors before the allegedly illegal transaction went through.

The trial of three former Anglo executives heard that Mr FitzPatrick said during Garda interviews he did not have a problem with the deal and that he had been assured by Anglo chief executive David Drumm that the deal was “kosher” and “above board”.

Mr FitzPatrick also denied to gardaí that he was using his role as non-executive director “to detach himself” from the Maple Ten deal.

The deal, which went through on July 14, 2008, involved the Maple Ten buying a total of 9.4% of Anglo shares. This was intended to unwind businessman Seán Quinn’s 29.4% control of Anglo.

Mr FitzPatrick said he assumed Mr Drumm informed the financial regulator about the deal, as the regulator had been kept up to date on all developments until that point.

Mr FitzPatrick said to investigators: “Well, just think about it; Was he [Mr Drumm] going to go out and do something illegal? In what was going to be one of the most publicly looked-at deals in Ireland? Why would he do that?”

Mr FitzPatrick went on to say it that would “be pretty strong” stuff to suggest Mr Drumm did not inform the regulator about the deal.

The interviewing gardaí said: “But you find yourself here today... Obviously the regulator made a complaint.”

Mr FitzPatrick replied: “That will come out in the wash one day because they [financial regulator] will be there. I can’t say to you the regulator knew definitely because I wasn’t there.”

Mr FitzPatrick, aged 65, of Greystones, Co Wicklow, denies all counts against him at Dublin Circuit Criminal Court. Two other former Anglo executives, William McAteer, aged 63, of Rathgar, Dublin, and Pat Whelan, aged 51, of Malahide, Dublin, have also pleaded not guilty to all charges.

Sgt Catharina Gunne of the Garda Fraud Squad told Úna Ni Raifeartaigh, prosecuting, that Mr FitzPatrick told them he was in France when Mr Drumm called him on July 9, 2008, and said they had a solution to the Quinn problem.

He said Mr Drumm told him they were going to get 10 customers and give them money to buy the shares. He said Mr Drumm refused to tell him the identities of the people as he was “keeping it very, very tight”.

Mr FitzPatrick said he only discovered their identities later through rumours and newspaper reports.

During the interviews, Mr FitzPatrick repeatedly told gardaí he had no executive function in the bank since he retired as chief executive in 2004 to become non-executive chairman.

“I was 56. I’d worked hard,” he told investigators. “I wanted to pass the baton to someone else. I’d done my time.”

He said when Mr Drumm replaced him, Mr FitzPatrick took care not to get involved in executive decisions or to be seen stepping on Mr Drumm’s toes.

“David wanted to show he was very independent of me,” he said. “He needed to make sure all his executives knew that he was the man in charge, so there was very little between us.”

Mr FitzPatrick said he hadn’t spoken to Mr Drumm since he sent him a text message around Christmas Day 2008.

The trial continues.