Drumm 'Lied', Say Anglo

An American judge is to make the call on whether fresh evidence from the Anglo Irish Bank warrants a high profile bankruptcy case.

Anglo has accused the ex Chief Executive of the bank, David Drumm, of repeatedly lying under oath. They have urged the US court not to allow Mr Drumm to walk away from bankruptcy.

As well as these accusations the bank made a litany of other allegations against Mr Drumm in two lengthy court documents filed last night, claiming that he committed numerous frauds on Anglo during his time as chief executive.

Mr Drumm filed for bankruptcy last year and the court has been examining his case that he should be allowed to walk away from more than €10m in debts he owes to Anglo.

The bank has alleged Mr Drumm deliberately concealed information from non-executive board members and fraudulently removed or changed loans to himself, four executive directors and the 10 so-called 'golden circle' investors who bought shares in the bank in 2008. The changes to loans of about €27 million to the directors and €450 million to the investors removed them from being personally liable.

It is now up to the US Judge to decide whether to pursue these allegations in a trial at which Drumm would have to answer to these allegations.

Anglo Irish Bank was a bank based in Ireland with its headquarters in Dublin. It went into wind-down mode after nationalisation in 2009. In July 2011 Anglo Irish merged with the Irish Nationwide Building Society, with the new company being named the Irish Bank Resolution Corporation.

Michael Noonan, the Minister for Finance stated that the name change was important in order to remove "the negative international references associated with the appalling failings of both institutions and their previous managements.

(LB/BMcC)