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IRISH INSTITUTE OF CREDIT MANAGEMENT
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The Irish Institute of Credit Management News Details
Anglo starts case against ex-ceo - 26-Nov-2009
Anglo starts case against ex-ceo Drumm
Anglo Irish Bank has begun legal proceedings against its former chief executive David Drumm over the transfer by him of a property to his wife's name. The state-owned bank has lodged a claim at the Four Courts in Dublin for the recovery of unpaid loans of 8m euro involved in the case. It is seeking to reclaim the loans and to revoke the transfer of a house last May on an up-market estate in Malahide the couple's joint names into the sole name of his wife, Lorraine. The transfer has allegedly made it impossible for the bank to repossess the house, which was included in security for Mr Drumm's loans.
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| The 5,200 sq ft house at 20 Abington was first listed in the Land Registry under both names in 2003. However, it was transferred on May 13th of this year into the sole name of Lorraine Drumm as "full owner". Mr Drumm stepped down as chief executive of Anglo Irish last December after a revelation that the bank had concealed loans of up to 122m euro to its former chairman Sean FitzPatrick.
Under an agreement between Anglo Irish and the government, the minister for finance Brian Lenihan must approve any legal actions by the bank against its current or former directors. The bank's current chief executive Mike Aynsley met this minister at the start of this week to discuss actions against former directors. Following that meeting, Mr Lenihan said that current and former Anglo executives who failed to repay loans would be sued in the courts. The Irish Times reports this morning that Mr Drumm took the property in Abington, a gated estate, off the market last month after failing to secure a buyer for the house, despite dropping his asking price from 2.79m to 2.3m euro. The paper says that the former chief executive is living in the United States. |
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