Full text of Financial Regulator statement


The following is the text of the statement issued by the Financial Regulator today, Sunday, February 15th, 2009:

With reference to the story in today's Sunday Times('Anglo told regulator of share deal'), the Financial Regulator categorically rejects the claim that it was aware of any so called 'sweetheart deal' relating to the purchase of Anglo Irish Bank shares in 2008.

While the Financial Regulator and other authorities were aware of a large CFD position held in Anglo Irish Bank shares in 2008 and steps being taken to have it unwound, the primary concern of the Financial Regulator related to the security of deposit holders with Anglo Irish Bank and any stability issues that might arise from the unwinding of this position.

The Financial Regulator was not aware of the identity or the financing arrangements of a so-called 'golden circle' of ten investors.

These details emerged during the due diligence process carried out in the lead up to the nationalisation of Anglo Irish Bank.

The Financial Regulator is currently investigating all aspects of the unwinding of this large CFD position in Anglo Irish shares, including the nature of loans to a group of investors and in particular the non-recourse nature of these loans with a view to pursuing and assisting in whatever action is necessary including appropriate legal proceedings.

The Financial Regulator is working closely with the ODCE on all these matters and has provided ODCE with significant amounts of information on these transactions, including ensuring that the ODCE is aware of the nature of the loans advanced.