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Periscope by Niall O'Dowd

Why David Drumm's allegations ring true - Says Irish state knew far more about Anglo collapse than they let on

Posted on Monday, November 28, 2011 at 06:46 AM

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Former Anglo Irish banker, David Drumm

READ MORE: David Drumm: ‘There is a witch hunt ... I convince myself that this will pass’

Are the Irish in denial over what happened during their banking and economic crisis?

Yesterday we published an exclusive interview with David Drumm, former CEO of Anglo Irish Bank, which made clear Drumm's belief that at key moments in that crisis the entire leadership of the Irish state were in cahoots to prevent a collapse at any price.

That may well have involved highly dubious actions, including one where Anglo Irish Bank loaned some of its best customers tens of millions of dollars to buy the bank's own stock as it began a freefall.

Drumm claims that such actions were clearly agreed to and known about by the key figures in the Irish banking , government and bank regulation world.

It is a sensational claim, making it clear that in the midst of a crisis extraordinary and possibly extra legal decisions were being made.

He cites a recent affidavit from a top bank official which shows that a working group of many leaders in those fields were meeting daily and agreeing strategy as the economic collapse began.

As Drumm describes it, everyone was working together until the collapse became inevitable and then "the scattering began"

Drumm feels that he and Anglo Irish have taken the brunt of the hatred in Ireland for the economic collapse.

He says he is prepared to accept some of the blame but that many of the other key players have got off Scot free.

It will be interesting to see the impact of Drumm's words over the next few weeks.

He is currently in bankruptcy proceedings in Boston and may well have cause to call on some of the same people now denying any knowledge of what was happening as the Irish banking collapse began.

Those were deeply murky times as the banks began to collapse and a panicked government and Irish superstructure tried to prevent it.'What they did in the end, guaranteeing the banks has comeback to haunt the Irish taxpayer.

What David Drumm says has the ring of truth in my opinion, It will be very interesting to see where it leads.

READ MORE: David Drumm: ‘There is a witch hunt ... I convince myself that this will pass’

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PolinDeB | Nov 28, 2011, 06:55 PM EST

The witch hunt will continue until he fesses up everything. Then he might get a little hero status with the Irish for at least coming clean while the others are not

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PolinDeB | Nov 28, 2011, 06:52 PM EST

I totally agree but unless he goes on official police record to tell everyone this and faces his own part in the debacle.. then we cannot prosecute them.. this has gone on long enough with those who let this happen still drawing huge pensions from the state they collapse.. Drumm can stay in exile, that can be his punishment but he should dob the others in...

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CaptainCon | Nov 28, 2011, 03:24 PM EST

Questions- was David Drumm's authorisation given for loans to certain people to have the paperwork changed to 'non-recourse' status? Was David Drumm involved in market abuse as laid out in the European Market Abuse Directive to which Irish financial services and banking sectors are subject in connection with the share ramping operation with the Maple 10? Was he aware of the system of non-disclosure of material personal loans to directors over an eight year period which did not feature in the report and accounts of Anglo Irish Bank or reports to the Irish Stock Exchange? The Maple 10 operation has been referred to as 'surreptitious' by Massachusetts authorities who were getting their information on Drumm from Anglo lawyers. A judge in Northern Ireland referred to the operation as market abuse. Let's see how the Gardai manage to make international fools of themselves by finding nothing they can charge Drumm and others with.

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EamonnDublin | Nov 28, 2011, 11:59 AM EST

Irish residents who have a finger on the pulse (or, I SHOULD say, "Irish residents who have a pulse")are fully aware that the ONLY reason for the lack of any will to prosecute the gangsters who crippled our country is that the gangsters know where the bodies are buried - and it goes right to the top of the money-grabbing shower of thieves. The beans would be spilled, the cat would be out of the bag, the can of worms would be opened: result - well, sadly, corruption is so endemic that I doubt if any/many prosecutions would follow. As for the "ordinary decent citizen", well, everybody should hang their heads in shame: we keep on electing these gobshites (if you'll pardon my colloquialism.

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RockNReel | Nov 28, 2011, 10:33 AM EST

Barristers, lawyers, Politicians, All gangsters!! Oh and dont forget the bankers who got away with all and sunk the country but who have yet to be penalized. Aint seen nothing yet !!!!

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LoyalCitizen | Nov 28, 2011, 08:41 AM EST

The criminal gangs of Ireland know exactly what they do with opinions in law...........Politicians, Judges, Bankers, Barristers, Solicitors, Civil Servants, Accountants, Drugs Dealers, IRA, UVF.............How many criminal gangs are there in Ireland?

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