Anglo Irish Bank Share Discussion Threads

[lbo] 27/1/2009 00:03

Anglo Irish Bank executives could face jail



Executives at Anglo Irish Bank could face up to two years in jail if the bank is found to be in breach of company law for lending up to €300m to investors to fund purchases of Anglo shares.

Weekend reports claimed executives at Anglo authorised loans of up to €300m to a "golden circle" of investors to allow them to buy Anglo shares last summer.

The new revelations came as a top-level Dail committee sent an invitation to former bank chief Mr FitzPatrick to answer questions about €87m in hidden loans he took out from Anglo.

However, Mr FitzPatrick cannot be compelled to attend the hearing.

[linney3] 26/1/2009 23:38

Hermana.Hopefully he will leave her in Ireland!

[hermana] 26/1/2009 20:50

Fitzer is packing de bag?

[cpl593h] 26/1/2009 17:01

For their own safety, several UK & Irish ex senior bankers will end up living in the States.

[masurenguy] 26/1/2009 16:20

Independent.ie

Former Anglo chief buys two US homes for $7.2m
By RONALD QUINLAN Exclusive

Drumm signed deal for second house day after State agreed bail-out

FORMER chief executive of Anglo Irish Bank, David Drumm, paid a total of $7.2m for two luxurious houses in the exclusive American resort of Cape Cod last year, even as the bank was being bailed out by the State. Mr Drumm, who resigned from Anglo Irish Bank in the wake of the controversy over €87m in covert loans taken by bank chairman Sean FitzPatrick, bought the houses for $4.6m and $2.6m respectively in the months of March and September 2008, according to records filed with the Massachusetts Land Registry.

Originally built in the 1900s, both of Drumm's Cape Cod homes were carefully restored by local developer Minglewood Homes in accordance with strict guidelines laid down by the Cape Cod Historic Commission before the former Anglo chief purchased them. The more expensive and luxurious of the two properties is located at the picturesque Stage Neck area, and overlooks the storied Nantucket Sound and the Oyster River. According to the developer, the refurbished Stage Neck property encompasses 4,800 square feet of living space over three levels. The first floor of the $4.6m house consists of a spacious living room with barrel vaulted ceilings, a formal dining room equipped with a double-sided fireplace, home study and a gourmet kitchen furnished with a centre island counter. The first floor also includes a master bedroom suite with its own ensuite bathroom. The second floor is laid out into two guest bedrooms, both with ensuite bathrooms. Both rooms offer views of the surrounding countryside and access to a massive 1,500 square foot deck. Finally, the third floor consists of a study and library, which again has its own access to the deck outside as well as 180-degree views over Nantucket Sound.

Documents filed with the Land Registry in Massachusetts show Mr Drumm and his wife completed the purchase of the $4.6m house on March 14 last year. The same records reveal the former Anglo boss took out two separate mortgages for $1m apiece to assist in the house's purchase with the Cape Cod Five Cents Savings Bank. Mr Drumm's other new home in Cape Cod is located away from the shore at Cross Street, the main thoroughfare in the nearby and idyllic resort town of Chatham. Originally built in 1918, the $2.6m bungalow was renovated and updated by the same developer with the addition of a dormer extension to the rear of the property. Apart from this, the interior of the house has been converted to an open floor plan with its two existing bedrooms moved to the newly-constructed dormer extension.

According to Massachusetts Land Registry filings, Mr Drumm purchased the Cross Street bungalow in September of last year, availing of a $1.8m mortgage, again with the Cape Cod Five Cent Saving Bank. Last week, an estate agent's sign posted in the front garden of the property suggested Mr Drumm has already put it up for sale again. Shareholders in the newly-nationalised Anglo Irish Bank will, no doubt, be intrigued to learn that their former chief executive completed the purchase of his second Cape Cod house on September 30 -- just one day after Anglo had gone into meltdown on the Irish Stock Exchange with the bank losing 46 per cent of its value, closing the session in Dublin at €2.30 a share.

That precipitous drop in Anglo's stock price -- driven by intense speculation that the bank was on the brink of collapse -- is understood to have played a significant part in triggering the Cabinet's decision on the night of September 29 to introduce the State's €400bn deposit guarantee scheme aimed at safeguarding our banking system. Not that the widespread fear being felt by Anglo's shareholders, the Government and the international investment community, had percolated through to Mr Drumm. With a €3.274m pay package in 2007 alone, the former Anglo chief executive appeared not to have experienced the credit crunch on a personal level just yet.

[hermana] 23/1/2009 17:23

linney,Fitzie was the one doing the funny dancing at HQ? Hear he is a bit down and not exactly looking forward to de ambulance chasers...

[linney3] 23/1/2009 11:09

May have made $200million in Nigeria but they asked him for bank details so they could transfer the funds............. :)

[hermana] 23/1/2009 10:01

Mas,bet Fitz has funds! He flogged a house in London last year for £15m and is reputed to have made $200m on a Nigerian oilwell 6 years back. Might be worth chasing his elusive ass.

[masurenguy] 23/1/2009 09:44

Can't see litigants getting anything and they could just lose more money on legal costs. Pursuing individuals might be more practical but the risk here is that they may already be effectively bankrupt.

[hermana] 23/1/2009 08:58

Mas,wonder if the class action suits get off the ground. If you have a loan with the scoundrels it might be risky to attack them via de back door...

[masurenguy] 23/1/2009 08:52

AIB & BoI up nearly 10% this morning while Barclays, RBS and Lloyds share prices continue to get hammered in London !

[lbo] 22/1/2009 15:22

Josh thanks for the kind words but not sure its a "congratulations" outcome. I genuinely feel sorry for those that lost money in Anglo. But many and not just myself were of the belief for a long time that the Anglo business model was fundamentally flawed!



Irish developers and investors contacted by Property Week, many of whom are Anglo Irish clients and did not wish to be named, said it is particularly vulnerable to bad debt in Ireland where it is heavily exposed to development land, 'which is virtually worthless'.

Sources speculate that the bank may have to waive interest payments on development loans and seek repayment of some or all of the loans held by developers.

One well-known Irish investor and developer said: 'Banks will have to decide if they want a development site sold at a loss or if they can work with the developer and continue to back them or bring in another party.'

He said Anglo is also considering taking equity stakes in development schemes, even if at a low price.

The greatest fallout is expected in Ireland, particularly Dublin, where Anglo is financing schemes in the docklands and city centre. It also financed high-profile site purchases in Ballsbridge by property entrepreneurs Seán Dunne and Bernard McNamara.

[joshalexander] 22/1/2009 10:50

LBO

Many congratulations here - great call.
Like many, I read but rarely post on these.

[lbo] 22/1/2009 10:33

A Dublin solicitor has assembled a list of between 60 and 70 Anglo Irish shareholders who want to sue the bank. Julian Deale, whose offices are in Monkstown, Co Dublin, has engaged senior and junior counsel and is holding a public meeting tomorrow week for shareholders who want to join in the class action. Another Dublin law firm, Lavelle Coleman, is also preparing a potential multimillion euro class action. "The proceedings have not yet been decided," said Mr Deale. "But the likely parties are Anglo Irish Bank, its directors, Irish Nationwide and the auditors of both institutions." - Irish Examiner

[gluefactory] 21/1/2009 19:30

A footnote to my post from yesterday regarding the death of Patrick Rocca.He lived in an exclusive area of castleknock,and just around the corner from him resides none other than Brian Lenihan out Minister for Finance who I guess put the final nail in Patricks coffin by nationalising Anglo

[caveat_emptor] 21/1/2009 17:44

Come into my office after this debate said the Minister, and I'll fill you in!!!

Such was the invitation,across the floor of the house,with the Minister noddin' all the while saying it.

If they were good boys and girl, he'd meet them in his office and bring them up to speed....or words to that effect....not without a non-disclosure agreement I'll bet!!!

Meanwhile, it was left to the Senate boyos, like Shaney boy, to rant and rave
and blow the (upper) house down....while the Government and opposition had a cup of tea and a chat about what is going to be done.

At which point I sense that OPPOSITION evaporated...in the national interest you know!!!


Caveat Emptor!

[masurenguy] 21/1/2009 16:20

I think that there are two issues relating to Fitzpatrick.

a) Has he actually broken any law for which he might be prosecuted ?

b) Has he still got all or part of the money that he has borrowed or has most of it been lost or diluted in property and/or other depreciating investments. What other assets does he have that the bank could potentially seize against outstanding loans ?

[lbo] 21/1/2009 15:23

Hey Liars...Do you remember our chat a while back?

New crisis as S&P says Anglo bond risk


Global ratings agency, Standard and Poor's said today that there was a risk that payment on around USD2.5 billion (E1.93 billion) worth of perpetual hybrid bonds issued by Anglo Irish Bank would be deferred due to possible state-aid rules.

[lbo] 21/1/2009 15:19

Anglo control Bill now law

The Seanad passed all stages of the emergency legislation to nationalise Anglo Irish Bank last night. The President today signed the Bill into law.

It was passed in the upper house without a vote, although several senators protested that they had called for a vote to be taken. Earlier the Dáil passed all stages of the bill by 79 votes to 67.

In the Seanad debate, Senator Shane Ross said no-one was being told the truth about Anglo Irish. He said it was a disgrace that the bank's EGM last Friday showed corporate Ireland at its worst, as there were no answers to any questions.

'One of the tragedies of the nationalisation, and whether you're for it or against it, is that is has the capacity to cover up what actually happened,' he added.

Senator Joe O'Toole said those responsible for what had happened had to be chased, even into the courts. He said a person could go to jail for not paying a household bill, yet those who caused the loss of jobs and pensions were never pursued.

For the Government, Dan Boyle welcomed the Finance Minister's statement that regulation was to be improved.

Senator Alan Kelly said rushed legislation was bad legislation, and nobody had confidence in the Government's actions in relation to the banking industry. He added that the Taoiseach's comment that it was 'business as usual' at Anglo was an unfortunate one