The trial of former Anglo Irish Bank chief executive David Drumm has heard details of telephone calls in which he described the Financial Regulator as "Freddy Fly" and Central Bank officials as a "shower of clowns".

Mr Drumm has pleaded not guilty to conspiring to defraud and to false accounting by making Anglo's corporate deposits look €7.2bn better than they were in September 2008.

Detective Sergeant Michael McKenna from the Garda National Economic Crime Unit gave details of telephone recordings recovered by gardaí from Anglo Irish Bank.

These calls were recorded in the bank's Treasury Department.

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One of the telephone lines recorded was a line used by John Bowe, a senior official in treasury.

He is one of the people with whom Mr Drumm is accused of conspiring to defraud.

A number of calls between Mr Drumm and Mr Bowe were played to the jury, beginning on 18 September 2008.

The jury has heard that large amounts of money were being withdrawn from Anglo at this time as the financial situation worsened.

The two men discuss how, if the bank is downgraded by the ratings agencies, Anglo could lose another €2bn.

They discuss a letter that the Financial Regulator had asked them to write, setting out that they were in breach of one of the terms of their licence.

Mr Drumm remarks that it is like "signing the death warrant" as it means they can force Anglo to stop lending, but he remarks they can do that anyway. Mr Bowe says Anglo is beholden to them.

In the next call, recorded the following day, transactions with Irish Life & Permanent are discussed.

Mr Drumm asks if they get €6bn from IL&P do they have to "cash back" and asks if Anglo has the cash. Mr Bowe tells him they do not have it.

Mr Drumm says they cannot take it off "Freddy F**king Fly down there [the regulator] because it will appear on the balance sheet".

He tells Mr Bowe they have to make their best attempt to get the balance sheet looking in reasonable health.

He says they are under stress because Lehman Brothers went bust and "other f**king, non-normal things happened".

Mr Drumm says he will be telling the Central Bank they need a loan because they are running out of money.

He says he will be keeping it "stupid simple" and keep asking the thick question - "when's the cheque arriving".

He says the problem is now at the Central Bank's door. If they do not give them the money on Monday, he says, they will have a bank collapse if money keeps running out the door the way it is running out the door.

On 22 September, the two men have a lengthy conversation about how much cash is actually left in the bank.

Mr Drumm talks about getting €4bn from that "f**king shower of clowns on Dame Street".

He also says the bigger problem is 30 September - Anglo's year end - at which the bank has to provide a snapshot of its figures for the market.

He says even with the €6bn "fix" which "Mr f**king Denis" - Irish Life & Permanent's Chief Executive Denis Casey - confirmed for him, that morning, Anglo is still "f**ked".

He also talks about the need to "fix" the bank's "poxy balance sheet" over year end. He describes the balance sheet as "shot".

Mr Drumm asks Mr Bowe if he's going to be able to "bloat" the balance sheet on the right hand side. He describes how if a snapshot is published on "f**king Bebo", it's not going to look good.

Mr Bowe says the "fixes ran away" from them. He describes failing efforts to get IL&P to consider a merger between the two institutions as a last roll of the dice.

On 29 September 2008, the court has heard the transactions at the centre of this case had already begun.

Mr Bowe is alerted to an issue when he is told that "Permo" will not do any more transactions without collateral.

Mr Drumm says the transactions have become an "academic exercise" at this stage. Mr Bowe says Anglo is giving IL&P the money, but getting it back in time, is becoming very, very tough.

Mr Drumm says "a journal entry would do it an awful lot quicker" and there is laughter as he suggests Anglo's Finance Director, Willie McAteer, might be auditing the books himself.