Anglo transactions ‘purely for optics’

THE €7.2billion transactions between Anglo Irish Bank and Irish Life & Permanent in September 2008 were for ‘optical benefit only’ and created no new cash, a jury has been told.

Ciaran Cunningham, former treasury manager at Anglo, was continuing his evidence yesterday on day 34 of David Drumm’s trial at Dublin Circuit Criminal Court. Ex-Anglo chief executive Mr Drumm accepts that in 2008 transactions worth €7.2billion took place between Anglo and IL&P, but disputes that they were fraudulent or dishonest.

Mr Cunningham told Paul O’Higgins SC, prosecuting, that there was no commercial rationale to the transactions with IL&P other than to present the numbers as customer deposits. Mr O’Higgins referred to the series of transactions between September 25 and 30, 2008 involving Anglo, IL&P and Irish Life Assurance.

Mr Cunningham agreed the only benefit was an optical one, and said the ‘cash-neutral’ transactions generated no new funding. Mr Drumm, of Skerries, Co. Dublin, denies conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud depositors and investors at Anglo by ‘dishonestly’ creating the impression that deposits in 2008 were €7.2billion larger than they were.

He also denies false accounting on December 3, 2008, by furnishing information to the market that Anglo’s 2008 deposits were €7.2billion larger than they were.

The trial continues.