Drumm says he is being made a scapegoat over banking crisis

Monday 08 July 2013 07.19
David Drumm attacked the 'drip, drip, drip' release of the tapes
David Drumm attacked the 'drip, drip, drip' release of the tapes

Former Anglo Irish Bank chief executive David Drumm has said he will no longer allow himself to be a scapegoat for the banking crisis.

Mr Drumm issued his statement to RTÉ news, as the transcripts of more recordings he had with another former Anglo executive, John Bowe, are published in the Sunday Independent.

Mr Drumm attacked what he called the “drip, drip, drip” release of phone recordings made at Anglo Irish Bank in 2008.

He claimed he is being made a scapegoat by politicians and what he described as “politically connected former bankers and politically protected senior pubic servants”.

He said these people did not want to see their role in the crisis highlighted.

Mr Drumm said a campaign of misinformation about the bank guarantee had been going on for several years and it had to stop if the public were to finally understand what had happened.

He repeated his call for all recordings made at Irish banks to be made public.

In the tapes published in the Sunday Independent, Mr Drumm and Mr Bowe are heard discussing how Anglo is coming close to breaking rules on the amount of liquidity it should keep in reserve.

The conversation was recorded some time over late August or early September 2008.

Mr Drumm is heard saying that falling below the regulatory minimums are not in themselves a disaster for the bank - unless somebody finds out about them.

He also referred to preparations for talks with the Central Bank.

Referring to "our buddies on Dame Street" he said Anglo may need to approach the Central Bank if cash becomes a problem.

In the event, Anglo did alert the Central Bank in advance that it was going to breach its liquidity ratios.

It is understood a number of Irish banks breached their ratios in September 2008.

A spokesman for the Independent Group has said that "readers of the Irish Independent and Sunday Independent have had an opportunity to hear as well as read what was on the Anglo tapes and to make up their own minds.

He said: "The assertions of Mr Drumm are not accurate."

"The Irish Independent intends publishing more details in Monday's print edition and on our website, Independent.ie."

"We have no further comment."

Anglo recordings handed to gardaí - Honohan

Central Bank Governor Patrick Honohan has said recordings of taped conversations between bank officials at Anglo Irish Bank relating to specific cases had been handed over to gardaí as part of an investigation.

Speaking on RTÉ's This Week, Mr Honohan said it was possible to now have a public hearing into banking and that in due course  confidential information contained in a preliminary investigation report compiled by him three years ago could be made public.

He said the content of the taped conversations between Anglo officials was reflective of a culture that was offensive and embarrassing nationally.

Independent Newspapers has published transcripts of conversations from 2008 between managers at the bank.

Mr Honohan said a new element that is disclosed in the tapes is the suggestion that the financial problems at the bank were much worse and there was an intent to entrap the Central Bank.

The Central Bank Governor said the Central Bank has tried to change an attitude of excessive defference and subservience to the regulated entities and was satisfied with the way it was developing staff and approaching the regulations.

He said he wanted to get information out into the public domain so that people can understand what happened in the banking sector.