Drumm 'advised' to leave for US

 

FORMER ANGLO Irish Bank chief executive David Drumm has claimed that he was advised by the bank’s chairman Donal O’Connor to relocate to the United States after resigning from the bank in order to avoid the “blame culture” in Ireland and Britain.

Mr Drumm has argued in his defence of Anglo’s legal action against him over unpaid loans that he was surprised when the bank told him in September 2009 that his move to the US substantially raised its concerns about his loans.

Anglo issued legal proceedings against Mr Drumm last November in an attempt to recover loans of €8.3 million, including €7.7 million owing on loans provided to buy shares in the bank which became worthless after its nationalisation.

He claims that he has assets to meet his liabilities but requires time to repay them. He is also counter-claiming, saying that he is owed €2.6 million from Anglo.

Mr Drumm lives in the town of Chatham in Cape Cod, Massachusetts, after leaving Ireland following his resignation as chief executive of Anglo in December 2008 over concealed loans to Seán FitzPatrick.

He has claimed that his move to the US was not motivated by his desire to avoid his responsibilities in Ireland, but he believed that he had little prospect of securing employment in Ireland or Britain after Anglo.

Mr Drumm has said that it was during a meeting on January 9th, 2009, that he was advised by Mr O’Connor that he should think about moving to the US. The meeting was also attended by senior independent director Ned Sullivan.

A former head of Anglo’s US operations, Mr Drumm lived in the Boston area from 1998 until 2003 when he returned to Ireland. He was appointed chief executive in January 2005, succeeding Mr FitzPatrick who became chairman.

Mr Drumm sold a property in Chatham last September for $412,000 which he jointly owned with his wife but he still owns another residence in the town.

Gardaí investigating alleged financial irregularities at Anglo have arrested and questioned two former executives, Mr FitzPatrick and ex-finance director Willie McAteer. Both were released without charge after being held for 30 hours.