Banker denies €1bn deal was ‘solo run’

A former bank executive has denied that he was on a solo run in executing an allegedly back-to-back €1 billion deal with Anglo Irish Bank, a court has heard.

Four former executives from Anglo Irish Bank and Irish Life & Permanent (ILP) are on trial for allegedly conspiring to mislead investors by setting up a €7.2 billion circular transaction scheme to bolster Anglo's balance sheet.

On day 66 of the trial, Det Sgt Catharina Gunne from the Garda Bureau of Fraud Investigation began giving evidence of voluntary interview statements provided in November 2013 by Peter Fitzpatrick.

Mr Fitzpatrick (63), of Convent Lane, Portmarnock, Dublin, was ILP’s head of finance in 2008.

Mr Fitzpatrick, along with Denis Casey (56), from Raheny, Dublin; John Bowe (52) from Glasnevin, Dublin; and Willie McAteer (65) of Greenrath, Tipperary Town, Co Tipperary have all pleaded not guilty at Dublin Circuit Criminal Court to conspiring together and with others to mislead investors through financial transactions between March 1st and September 30th, 2008.

Det Sgt Gunne asked Mr Fitzpatrick about a transaction in March 2008 in which Anglo placed €1 billion with ILP and in turn €750 million was placed overnight in Anglo by ILP through Irish Life Assurance (ILA), ILP’s non- banking subsidiary.

The jury has already heard that deposits from non-banking institutions are viewed by the markets as superior to inter-bank deposits as they are a measure of confidence in a bank.

No approval

Det Sgt Gunne put it to the accused that his former boss, Mr Casey, who was chief executive of ILP in 2008, did not give approval for the March transaction.

Mr Fitzpatrick replied that he did and that he himself could not have proceeded with the deal without his chief executive’s approval.

He said: “Denis Casey agreed that what was proposed was in accordance with the green jersey agenda or his understanding of it . . . His direction was that there was to be no risk for ILP group.”

He said Mr Casey told him this transaction would be the first step in obtaining reciprocation from Anglo.

"That reciprocation was taken by me to refer to the ECB repo facility and better managing that at the behest of the Central Bank and financial regulator," he said.

“He gave me his authority . . . to execute the transactions. It is a flight of fancy to suggest I was doing a solo run on this.”

The trial continues before Judge Martin Nolan and a jury. Judge Nolan has told the jury that it will be "well finished" by May 25th.