Report due soon on loans to Anglo directors

The inquiry team set up to investigate the Financial Regulator's handling of the directors' loans controversy at Anglo Irish Bank is due to report its findings to the regulator's board by Friday, writes  Simon Carswell, Finance Correspondent

The regulator's staff first learned in January 2008 that Anglo chairman Seán FitzPatrick had been transferring loans of up to €87 million off the bank's book to conceal them from shareholders.

Three top officials in the regulator's office, including chief executive Pat Neary, have given different versions of whether or not Mr Neary was informed.

Minister for Finance Brian Lenihan has said he became aware of the loan transfers last month. Mr Neary has claimed he only became aware of the loans at that point.

Two members of the Irish Financial Services Regulatory Authority - Dermot Quigley, former chairman of the Revenue Commissioners, and John Dunne, chairman of IDA - are assessing the regulator's handling of its investigation into the Anglo loans.

They will pass their findings on to the regulatory authority (board), which will, in turn, report to Mr Lenihan on the matter.

Anglo is not expected to publish its annual report for the year to September 30th, 2008 until later this month. The report will contain details on directors' loans of €150 million, including, for the first time, Mr FitzPatrick's loans.

The bank is also likely to postpone its annual meeting from January 30th until late next month, as it is holding an emergency shareholders' meeting on January 16th to approve the State's €1.5 billion investment which will give the Government control of the bank.

Former Revenue chairman Frank Daly, a State appointee on Anglo's board, and Declan Moylan, chairman of law firm Mason Hayes Curran, are carrying out a review of corporate governance practices at the bank.

Meanwhile, an appearance by Mr Neary before the Oireachtas Committee on Economic Regulatory Affairs has been rescheduled from today until next Tuesday.