The Financial Regulator has called in gardaí to take over its investigation into suspected market abuse at Anglo Irish Bank.
The Financial Regulator had been investigating three main issues at the bank in recent months.
Two of these investigations have now been elevated to the status of criminal investigations and have been referred to gardaí by the Financial Regulator today.
These include the circumstances related to the loan of €450m to a secret group of ten investors to assist in the purchase of a 10% shareholding in the bank originally built up by businessman Sean Quinn.
The other investigation passed over to gardaí involves the controversial back-to-back deposit of €7.4bn from Irish life & Permanent.
The Financial Regulator has pursued its own investigations into these matters as far as it can and has now decided that a criminal investigation is warranted into both matters.
Its decision to call in gardaí has serious implications for the bank and for the individuals involved in both incidents under investigations.
The maximum penalty under market abuse legislation is ten years in prison and €10m in fines.
Gardaí will now lead both investigations and will be assisted by the Financial Regulator.
The Financial Regulator said this evening that both matters are of a serious nature and that it will not be commenting any further about them.
