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Sean Fitzpatrick stands down at Anglo Irish Bank
Read more about: Economy, Features
Update: David Drumm steps down as Anglo Irish Chief Exec in the wake of the loan scandal. The financial regulator had knowledge for a while this was happening and the couterparty were Irish Nationwide. Anglo is now below 30c per share and one wonders when the bank will simply beforced to merge.
It is a surprise it didn’t happen sooner that the chairman of a bank which has lost 98% of its share price in the past few month resigns. Perhaps it is an insight into how Anglo became the maligned sick-man of Irish banking. Fitzpatrick’s scalp is likely to be the first casualty of the E10 billion liquidity injection, but he will not be the last.This begins the reshaping of the Irish banking system but the vital questions remain unanswered, in whose interests will it be done?
From RTE:
In a statement released this evening, Mr Fitzpatrick said his resignation related to an €87m loan he had from the bank.
Minister for Finance Brian Lenihan has welcomed the appointment of Donal O’Connor as the new chairman of the bank.
The Minister said that Mr O’Connor, who has a substantial and impressive commercial track record, seems a natural choice to lead this financial institution in what is a challenging period for all financial institutions.
Minister Lenihan said Anglo Irish remained covered by the banking guarantee.
He said he was disappointed at the circumstances surrounding Mr Fitzpatrick’s departure and said it was important corporate governance was upheld.
He added that the Government was making progress on recapitalising the banks.
The bank’s board also announced that Lar Bradshaw, a non-executive director, has tendered his resignation.
In a statement, the bank said: ‘Mr Fitzpatrick’s decision to resign is based on the fact that, over a period of eight years to 2007, he temporarily transferred loans with Anglo Irish Bank to another bank prior to the group’s year end.
‘This transfer of loans did not breach banking or legal regulations. It was, however, inappropriate from a transparency point of view.’
The bigger questions are, how many of the other banks have this, and why have we not been told?… why did the Regulator not tell investors? What is the relationship between Fitzpatrick, Anglo and the DDDA? Is Fitzpatrick tax compliant? Has the Regulator referred the matter to the ODCE? How far back did Lenihan know about this? How can a bank worth €250m have loans to directors of €150m?
Note the link via large Anglo shareholding to Sean Quinn, who had to step down from Quinn Insurance when a similar issue arose not long ago (related company loans).
And the other bank he used to get the temporary loans from? Irish Nationwide. Well quelle fecking surprise.
And the Financial Regulator knew about this ‘earlier this year’. How much earlier? Last month? Last January? Why the hell was it not immediately brought up?
When Anglo Irish Sails Away Does The Galway Tent Buy Sandymount Strand With Your Tax Money?
Anglo Irish Bank made a loan of €288 million enabling a consortium to buy the Glass Bottle Factory for €412 million. This factory is sited on Sandymount Strand and has been liberated from public ownership. The Dublin Developers Digout Autocracy (DDDA) is an ‘investor’ using taxpayer cash; the Developers Autocracy also decides the planning permission, bypassing Bord Pleanala.
Guess who benefited in the form of substantial bonuses, options, revolving doors and other compensation.
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http://galwaytent.blogspot.com/search?q=sails+away
Posted by email: galwaytent@gmail.com on Friday, October 10, 2008
Eh, that would be David Drumm. Brendan Drumm is head of the HSE.
ha ha, quite right. amended that
Now we know why Irish Nationwide was scouring for London deposits so eagerly. The loan book was spiking by 87 million euro exposure to a single borrower when Fitzpatrick needed the loan off Anglo-Irish books.
Burning question:
Why did Ernst & Young not qualify their Audit Report?
They have audited the accounts since 1970, when Anglo was called City of Dublin Bank.
Surely a half-way competent audit manager would have been able to spot the net cash movements?