Cowen: No ministers linked to Anglo-Irish 'golden circle'

Brian Cowen tonight denied any Government ministers had links to the so-called ’golden circle’ of wealthy businessmen handpicked for a share buying scam at Anglo-Irish Bank.

Opposition suggestions of a possible Cabinet connection to the €300m secret investment were no more than a juvenile conspiracy theory, the Taoiseach insisted.

During sharp exchanges in the Dáil, Fine Gael leader Enda Kenny demanded answers to several questions about the banking scandal, as pressure intensified for more details about ten people loaned money from Anglo-Irish to buy a stake in the bank, to protect its share value.

“When did the Taoiseach find out about these transactions? Was any member of his Government in any way associated with this?” he asked.

But Mr Cowen accused the Opposition leader of trying to attack his reputation and integrity.

“One of the points raised by [Mr Kenny] was whether the ministers in the Taoiseach’s Cabinet entourage supported a €300m deal with select ’golden circle’ customers of Anglo Irish Bank,” he said.

“We were not involved with this, it was an internal bank matter. It had nothing to do with members of Government or any parties in the Government.”

In a related development, Mr Cowen insisted he was acting on official advice as then Finance Minister and was not swayed by lobbying when he reversed a 2006 Revenue decision to impose a tax on complex Contract For Difference (CFD) share deals.

He said, in a personal statement, that CFD contracts made up 30% of shares in the Irish Stock Exchange in 2005 and any change in the law would have severe consequences for the liquidity of the market.

More revelations about Anglo Irish Bank are expected when its annual report is published in coming days as well as the forthcoming PricewaterhouseCoopers audit of the banking sector.

Justice Minister Dermot Ahern said tonight it would be “preferable” if the golden circle was named but he insisted an investigation by financial authorities was still ongoing.

In the Dáil, Mr Cowen denied he was protecting any golden circle of investors.

“I don’t know the identity of these people. It is under investigation by the Director of Corporate Enforcement and the regulator,” he said.

“It’s the same way I can’t walk into Fitzgibbon Street Garda Station and ask the sergeant on duty to name suspects currently held by them. It’s a matter for the statutory authorities.”

The Irish Stock Exchange (ISE) said it and other financial institutions lobbied both the Department of Finance and Revenue to reverse the planned stamp duty taxes on CFDs almost three years ago.

Brian Healy, ISE director of traded markets, said it had meetings and telephone calls with officials but never spoke face-to-face with Mr Cowen.

“This wasn’t some kind of cloak and daggers [lobbying]. It was very up front,” he said.

Mr Healy said various banks, investment banks and brokers also made representations about their opposition to the planned tax changes on CFDs.

Labour leader Eamon Gilmore said the Irish people now own the nationalised Anglo Irish Bank, and were due answers about the golden circle.

“These people who gambled €300m recklessly must be named,” he said.

Meanwhile, Finance Minister Brian Lenihan said he will meet later this week with the former chairman of Irish Nationwide Michael Walsh who resigned last night.