Regulator was ‘hostile’, Drumm trial told

AN ex-Anglo Irish Bank executive has told a jury he was shocked at Financial Regulator’s ‘hostile and aggressive’ reaction to transactions with Irish Life & Permanent as he believed ‘the regulator was aware they had taken place’.

Matt Moran, Anglo’s former chief financial officer, was being cross-examined yesterday at David Drumm’s conspiracy-to-defraud trial at Dublin Circuit Criminal Court. He agreed with Brendan Grehan SC, defending, that during a regular meeting at the regulator’s office in January 2009, he was ‘suddenly being asked questions as if the regulator knew nothing about the transactions’.

‘I didn’t expect the matter to be brought up in such a strong manner by the regulator,’ he said. Mr Moran said he then contacted Mr Drumm, who had by this time left Anglo, to ask him about the regulator’s awareness of the ILP transactions. ‘Mr Drumm replied to you very swiftly after you made the enquiry?’ Mr Grehan asked. Mr Moran agreed.

The jury viewed an email from Mr Drumm, stating that all minutes of meetings reflected that the balance sheet would be managed over year end, adding that this was common practice in all banks, ‘credit crunch or not’.

Mr Drumm, of Skerries, Co. Dublin, denies false accounting and conspiring with others to defraud Anglo depositors and investors.

The trial continues.