Drumm ‘moved heaven and earth to keep bank afloat’
David Drumm is already serving a six-year sentence in Mountjoy prison for his role in a 7.2 billion euro fraud conspiracy at Anglo.
A former Anglo Irish Bank chief executive moved heaven and earth to keep his bank afloat, a court has heard.
David Drumm, 51, appeared at Dublin’s Central Criminal Court in a white polo shirt and jeans for sentencing after pleading guilty to giving unlawful financial assistance to a group of businessmen to buy shares in Anglo Irish Bank during the 2008 financial crisis.
The bank was involved in providing the group with the money in order to unwind the 25% stake businessman Sean Quinn had built up in Anglo using contracts for difference (CFDs).
Using his CFDs, Mr Quinn could bet on the bank’s shares without actually owning them.
Anglo had reached the maximum amount of lending available to Mr Quinn of 25% by 2008, which was worth around two billion euro.
Mr Drumm’s defence SC Brendan Grehan claimed in his mitigation that a number of bodies did not flag any legality issues when the idea of lending the money to the group was proposed in order to wind down Mr Quinn’s stake in the bank.
Mr Drumm moved heaven and earth trying to solve this in conventional ways and evidence points to a large body of people not seeing this as a legal problem Defence SC Brendan Grehan
“Mr Drumm moved heaven and earth trying to solve this in conventional ways and evidence points to a large body of people not seeing this as a legal problem.
“All of the people involved in this in Anglo Irish Bank seemed to believe they had legal clearance for it, there was no show stopping problem by a legal point of view.
“I don’t stop at Anglo’s legal adviser, but the Financial Regulator, whether he himself could recall it or not, Morgan Stanley and their board, whether they’re prepared to admit their knowledge of how this was to be funded.
“All these matters happened and came together at a time where the Financial Regulator told Anglo they could not lend Mr Quinn any more money, the share price was falling and Quinn was haemorrhaging money,” Mr Grehan said.
The 10 charges involve the “Maple 10” businessmen, in which the group were helped to buy shares in the bank during the financial crash.
The Maple 10 including Brian O’Farrell, Gerard Conlon, Gerry Gannon, Gerard Maguire, John McCabe, Joe O’Reilly, Paddy Kearney, Paddy McKillen, Seamus Ross and Sean Reilly on dates in July 2008, Drumm admitted authorising Anglo to give unlawful financial assistance for the purchase of shares.
There is no suggestion that any of the 10 businessmen did anything wrong.
Mr Grehan added that Mr Drumm had no previous convictions at the time when the lending took place.
Judge Karen O’Connor told the court she would retire to consider the mitigation plea and court would resume for sentencing on Tuesday afternoon.
The new sentence will be added to the six-year sentence Drumm is already serving in Mountjoy prison for his role in a 7.2 billion euro fraud conspiracy at Anglo.