Drumm’s wife began ‘imagining life without ex-Anglo chief’ and demanded cash

David Drumm’s wife said she was "imagining life without" the former Anglo Irish Bank chief executive when cash transfers began moving to her new bank accounts just as the financial meltdown of September 2008 was taking hold.

On what was scheduled to be the final day of Mr Drumm’s bankruptcy proceedings in Boston, Lorraine Drumm was cross-examined by Kenneth Leonetti, representing IBRC — formerly Anglo — which, along with Kathleen Dwyer, trustee for the other creditors, are attempting to prevent the disgraced banker from being discharged from bankruptcy.

If successful, Mr Drumm will be able to enjoy a fresh financial start in the US, having moved there in 2009.

€1.2m was transferred to bank accounts of Mrs Drumm at the end of 2008, the court heard.

“Our marriage was going through a really tough time,” she said.

“The bank was going through a tough time. My husband was stressed out... he was working all the hours God sent him.

“I was raising the girls on my own — it just took its toll... A lot of things collided.”

She said she needed to assert herself and demand a “nest egg” of her own.

“I didn’t know if the marriage would survive... I didn’t know if he would drop dead of a heart attack... I was imagining life without him.

“I wanted money I could control myself... I wasn’t thinking about (Mr Drumm’s) creditors, I was thinking about me and my two children and about my marriage that was falling apart.

“I had decided that I had a number in my head that I would feel reasonably comfortable with if something went wrong.”

Directed by her husband’s lawyer, Mrs Drumm reiterated the couple’s concern about privacy and media intrusion to explain why a bank account and nominee trust was opened in her maiden name, Farrell. “I knew the media would be on my doorstep yet again,” she said.

She also gave her version of events that led to the money she leant to her husband for his new business, recalling it was a loan, not a gift, “because it was coming out of my bank account and I wanted it back”.

Earlier, the attorney who drafted a new purchase agreement soon after the closing of their $2m home in Wellesley, Massachusetts, testified that Mrs Drumm insisted “over and over” that her own money was used to purchase a new family home.

Peter-Paul Covo was instructed by the couple to reflect the fact that Mrs Drumm’s money was used to buy the home and that if any sale would occur, she would be the first to receive money.

Both sides will return next Wednesday for closing arguments.