Seán Fitzpatrick steps down as Chairman of Anglo

Is there any mention of 'fines' for the individuals involved and the companies, or are these actions not considered to be breaches of regulatory requirements?

The regulator knew earlier this year about this. Lenihan must answer when did he find out? Did he know about this at time of guarantee
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'The transfer of Mr FitzPatrick's loans was discovered by the regulator during an inspection of Irish Nationwide in January.' IT
 
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Brendan said:
I would like to know which financial institution lent him €87m every year for 6 years for a few weeks to refinance the loan?

Did they ask the purpose of it?

Is the Financial Regulator looking at that one as well?

Brendan
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I agree, and if another bank loaned him the money they must have known or suspected he was doing it to hide it from the auditors and they may have been under an obligation to disclose it to the financial regulator. Also what use auditors if they cannot see or check what is going on and ditto for the financial regulator. Wonder what else is going on in the accounts in this bank and others.
 
Moral Issue Regarding Anglo Loan to Director

The Chairman resigned over loans of €87 Million to himself. He transferred them over a eight year period to keep off year end books.

What else will come out of the woodwork- Is this common across all banks.

Their is a major moral issue here.

It would be interesting to see what terms he got on these loans, who knew about loans, who was involved in arragement of them.

Them their is issue of other bank who provided temporary loan- What

Looks like a number of people aware and involved.

Wonder is it a case for Director of corporate enforcement.
 
Re: ACC Chairman Resigns

What really annoys me about people like this is that they conveniently resign with a very nice pension and are not help accountable in the aftermath.
We have put our pension into Anglo Irish because we lost a considerable amount through various schemes, and now I'm wondering if we should consider changing to another bank. Any suggestions.
 
BroadbandKen said:
Who is stepping down from Irish Nationwide? The regulator knew earlier this year about this. Lenihan must answer when did he find out? Did he know about this at time of guarantee? The Irish Public are being treated with total contempt.
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Where does the Irish Nationwide come into this? Have they been publicly identified? If not, please correct your post.

Brendan
 
Appalling that he should be allowed to resign and walk away with no doubt, a generous pension and payout. He should be sacked, fired, end of.
 

Brendan,

Good morning - I'm interested in your views above on this one. I'd have a blacker/whiter view on this issue (and I'm not just saying this because I work with a competitor - if (and I sincerely hope not) that any of our directors have done anything akin to this, then the same view would hold ...

I'm working on the basis that what I heard last night on the radio and again this morning are the facts of the case ...

a) I think this is plain and simple fraud - I'd see it as falsifying year end accounts - which are supposed to give a 'true and accurate' picture of the entity ...

b) How did both their internal audit and external audit not pick this up over an eight year period? That amazes me ...

c) The Regulator appears to have known about it for some months and thinks it's 'inappropriate' - that statment would amaze me also.


The fact is albeit I work in a different bank, but in the same industry, I''ll now go through days of snides comments, jokes (half joking all in earnest types) and I'm just getting tired of same.

I hope our guys are in the position to come out quickly and reassure customers, staff and the market that we have no such incidence - if they can't do that, then I'd have to say for the first time, I'd be beginning to dispair........


BM
 
"One of the loans was a joint loan with Lar Bradshaw and I would like to emphasise that he had no knowledge of the temporary transfer of this loan."

I find this comment from Fitzpatrick absurd. How do you move a multi euro joint loan from Bank A to Bank B and then back without 3 things happening

1) All parties sign for loan from Bank B
2) Bank A clear loan and write to the joint parties that loan is cleared.
3) All parties sign for loan to be moved back to Bank A.

Other questions that need to asked:
Were solicitors involved in this? Who paid the legal fees.
Did Bank A pay its own fees when taking the loan back.
Did Bank B pay its own legals?
Did Bank B charge a fee each time. (It should have.)
What purpose was given for the loans with Bank B.

Another possible scenario:
With the time required for the solicitors to do searches etc, I find it hard to get my head around the transfer.
Another way this could happen is if you had a rolling unsecured credit line which meant the money could be moved unilaterally. And if that's the case how did the the auditors and FR not see the massive unsecured exposure (whether drawn or not it should be in the lending reports).
 
Lar Bradshaw is also on the Risk and Compliance committee in Anglo, so whatever about not knowing that the loan had been moved out of Anglo, he surely would have seen it come back in?
 
There are 2 issues here from my point of view:

1) Fitzpatrick is known to be friendly with Michael Fingleton and given the Nationwide link this is troubling

2) Who has been auditing Anglo for the past few years? I'd imagine one of the big 4, and whoever it is has serious questions to answer.
 
I am very interested to see what fees the banks placed on this.
If Bank B didn't charge a fee then I would argue that they are complicit in not disclosing material facts to the regulator.
If they charged a fee and underwrote the deal as normal they can surely argue that they took the business on as a commercial decision.

And I am not wholly satisfied that the directors did nothing illegal. It is quite possible that they breached the fiduciary duty to shareholders.
 
I wonder would the the late Conor Cruise O'Brien have appreciated the irony of the spirit of CJH re-appearing in the form of the latest Anglo GUBU story, on the night of his own death
 

Think i see where you are coming from, but I would differ slightly ...

For me the paying of a 'fee' still wouldn't take away the fact that I'd see this as anything other than fraud. If it were a one off transaction, i.e. towards the end of one financial year the debt was moved from Bank A to Bank B - then fine I'd accept that - but the fact that this appears to have hopped and trotted between banks at year end each year for eight years leaves me with no option but to conclude that this was fraud.

At a time when the banking industry has been dragged through the mire (especially the practices that pertained in the 70' and 80's), and as I've observed real efforts to comply with regulation/compliance and to operate within the spirit of the law (I know some will argue that that hasn't happened, but in my role as a manger since the mid '90's I can say I've seen a concerted effort to rectify the wrongs of the past and to adopt compliant practices) - and it's in this light that I find it inconcieveable to think that a senior person in any financial institution would adopt the practices we are are now reading about.

Regards,

BM
 
It is certainly shady and I suspect bordering on a breach of fuciary duty.
I wonder did it move to the same bank every year or did they spread it around to different banks? Afterall, sharing is caring
 
yoganmahew said:
Lar Bradshaw is also on the Risk and Compliance committee in Anglo, so whatever about not knowing that the loan had been moved out of Anglo, he surely would have seen it come back in?
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Ah, the Father Ted defence - "the loan was 'resting' in another Bank".
 
For anyone interested, Ernst and Young are Anglos auditors. Surely their reputation will take a huge hit over this?
 

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