David Drumm, former chief executive of Anglo Irish Bank

Former Anglo Irish Bank Chief executive David Drumm who recently filed for bankruptcy in the US could face extradition proceedings if the Director of Pubic Prosecutions in Ireland takes a case against him at the end of police investigations the Irish Parliament heard on Wednesday.

Following a debate on the Irish Bank guarantee, the Minister for Finance Brian Lenihan responded to questions from the House.

A Labour party representative asked the minister if he intended to “pursue” the former bank boss “in respect of the collapse of Anglo Irish Bank? If so, will you consider extradition proceedings?”.

To which the Minister replied “extradition proceedings can take place at the conclusion of the Garda inquiry. In the event the Director of Public Prosecutions institutes proceedings against particular individuals, their extradition can be sought in respect of those offences.”

Labour party finance spokeswoman Joan Burton called on Mr Lenihan to make a “comprehensive statement” regarding future proceedings against senior bank executives “particularly in view of the fact that the former managing director of Anglo Irish Bank has taken refuge in the courts of the United States”. She further questioned the Minister about how he intended to “to ensure that this particular individual is made accountable to the Irish system?”.

Mr Lenihan said that Mr Drumm's outstanding liabilities to the bank total are €8.5 million. He said
Anglo Irish Bank “has sought to maximise the return for it and the taxpayer. The tactics adopted by it and its legal team are a matter for them in the day-to-day operation of the bank. I have been clear that the bank should pursue all debts owing to it and Anglo Irish Bank has instigated proceedings to achieve this.”

Mr Lenihan noted that the bank “made its latest offer on October 8th however Mr Drumm’s representatives had not responded to this counter offer when he decided to file for bankruptcy in the US”.

Mr Drumm has made settlement proposals but “what was offered to the bank would have left a severe shortfall in the region of €4 million to be borne by the taxpayer, which was not acceptable to the bank. Its priority throughout has been to ensure that Mr Drumm discharges the full amount due, even if that was spread over a number of years,” the Finance minister added.

Mr Lenihan concluded that the issue now lies in the hands of Anglo Irish Bank “It is now a matter for the bank and its legal team to assess this latest development and take whatever action is necessary to protect the bank and taxpayers’ interests. The bank remains in contact with the National Treasury Management Agency . . . and is keeping the latter briefed on the various proposals”.

This week Anglo Irish Bank secured an temporary court injunction restraining Mr Drumm's wife from transferring the couple's former home in Co.Dublin from her sole ownership.

Despite his unpaid loans of over €8 million Mr Drumm who resigned as chief executive from the bank in 2008 has claimed that Anglo owes him almost €3 million in salary, pension and deferred bonus payments.