IL&P Directors Resign In Anglo-Gate Furore

Two senior figures in Irish Life & Permanent have resigned as the Anglo Irish Bank scandal comes to the boil.

A spokesman revealed this morning that the group Finance Director Peter Fitzpatrick and Treasury Head David Gantly have tendered their resignation after a board meeting last night.

The news comes amid revelations this week that IL&P had given a multi-billion euro ten-day loan to the Anglo Irish Bank on the day Anglo had to submit its year-end figures.

It is believed the lodgements were designed to disguise the balance sheet, making it appear billions healthier than it actually was.

On Wednesday, IL&P's Communications Chief Ray Gordon described the loan as "exceptional support", saying the loan had been made "during a period of unprecedented turmoil in global financial markets".

"The transactions were fully and appropriately accounted for in the books and records of Irish Life & Permanent and in our regular reports and returns to the Financial Regulator," he said.

But in a turnaround today, the Board have issued a statement expressing its strong disapproval of and disappointment with some of the specific measures used to support Anglo Irish Bank during 2008. The board also claims it was not informed of "the specific manner in which such support had been afforded to Anglo Irish Bank" by its own employees.

The IL&P board went on to apologise for mistakes made by the bank and said a full review of procedures was underway.

However, the board said it declined to accept an offer of resignation by Chief Executive Denis Casey.

So far, the scandal has led to the resignation of the Anglo-Irish Chairman Sean Fitzpatrick and Chief Executive Officer David Drumm, while last week saw the departure of Financial Regulator Pat Neary. It's not yet clear if the two latest resignations are the end of the Anglo-gate debacle or only the beginning.

(DW/BMcC)