Top Irish banker may be extradited from U.S.
A top Irish banker who is now living in the U.S. may be extradited to face charges that he concealed the source of a $10 billion deposit to the bank, which made the balance sheet look far more favorable for investigators.
David Drumm, former Chief Executive of Anglo Irish Bank. now lives on Cape Cod near Boston, but is the subject of increasing inquiries as the scandal surrounding the bank creeps ever closer to him.
Next week it is expected to be revealed that Anglo will need a further $14 billion from Irish taxpayers to survive in addition to the current $7 billion it has received. The scandal is so serious that Ireland's finance minister Brian Lenihan will devote time during an address to the nation next week to discuss it.
Already, bank chairman Sean Fitzpatrick and another senior employee have been held by police for questioning before being released but insiders say criminal charges could well be filed.
Anglo's near collapse was precipitated when it turned out that the $12 billion was a temporary loan from another bank that also covered its tracks.
Drumm has now made inquiries with Irish police as to what course they want to follow with him. Irish police admit that they cannot force him to return to Ireland without an extradition warrant.
Sources tell the Sunday Independent that "discussions" are under way with Drumm to find out if he will be available for interview when required by the police fraud squad.
The newspaper says more arrests are expected as the investigation focuses on the six top executives suspected of having knowledge of the highly unusual transaction.
Drumm has claimed in court papers that he did not move to the US to flee, but because he had no employment prospects in Ireland, he said that Anglo chairman Donal O'Connor advised him to go to America to avoid the "blame culture" after the bank's collapse in December 2008.
He also has €12.3m in loans he received from Anglo which he used to buy shares in the bank, which are now worthless.
Anglo is suing Drumm for repayment of the loans