Det Sgt Brian Mahon of the Garda Bureau of Fraud Investigation.
The court sat for just over an hour yesterday. Det Sgt Mahon, on secondment to the Office of the Director of Corporate Enforcement, told the court he interviewed Pat Whelan, one of the accused, by appointment on April 9th, 2010.
In the statement given by Mr Whelan to gardaí on that date , read out in court by Úna Ní Raifeartaigh SC, prosecuting, he said he joined
Anglo Irish Bank
from AIB in October 1989 and left in December 2009. At Anglo he worked mainly on the lending side . In his latter period, he was managing director of the Irish loan book, which amounted to €40 billion. About 260 staff worked under him and he reported directly to chief executive
Det Sgt Mahon read out the contents of a report written by Mr Whelan in late 2008 and early 2009. Entitled
Review of Quinn Group and Related Transactions
, it was prepared at the request of then Anglo chairman Donal O’Connor. It gave an account of events leading up to the transaction to unwind the Anglo stake of businessman Se án Quinn in Anglo in July 2008.
The report recounted that Anglo’s relationship with Quinn began in December 1998, following the acquisition by Anglo of the Smurfit Paribas loan book. The document gave background information on contracts for difference (CFDs) – the investment products through which Quinn built up his stake in Anglo – and recalled the market rumours that led Anglo to approach Quinn in September 2007 about his economic interest in the bank.
It also detailed Anglo’s attempts to unwind the large Quinn holding – first with institutional investors and then with individuals who would buy a portion of the shares underlying Quinn’s CFD position.
The report stated that the financial regulator was kept “fully informed” about the so-called Maple deal and was anxious for it to proceed.
Asked by gardaí how he knew the regulator was in contact, Mr Whelan said he was told by William McAteer, Anglo's director of finance, by Matt Moran, its chief financial officer, and by chief executive Mr Drumm.
Mr Whelan said he recalled specifically “David mentioning Pat Neary”, then the financial regulator. “They seemed to have a hotline to each other,” he added. He understood there was daily contact “between those individuals”.
He also told Garda interviewers that he heard one side of a phone call between Mr Drumm and
, prudential director at the financial regulator’s office, in the week the Maple deal was done. He said Mr Drumm mentioned the names of some of the Maple 10 to Mr Horan.
On the process of selecting the Maple 10, Mr Whelan said a list of clients was drawn up who “would have the strength and appetite to support the bank”. Mr Whelan said he compiled a list of names at Mr Drumm’s request, but some changes were subsequently made to that list.