RTE News has learned that Anglo Irish Bank has issued proceedings against its former chief executive David Drumm. It is understood the legal action relates to borrowings of €8m from Anglo Irish Bank to Mr Drumm and his transfer of property to his wife's name.
Mr Drumm was chief executive of Anglo until last December when revelations about secret loans to directors emerged. Mr Drumm himself has loans of €8m from the bank.
It is understood that Anglo Irish Bank today issued proceedings against Mr Drumm relating to those borrowings. It also issued proceedings against Mr Drumm and his wife Lorraine.
This legal action relates to a move by the couple to transfer property out of their joint names into Lorraine Drumm's alone. That would have the effect of putting the property out of reach of the bank.
Anglo's proceedings are seeking to overturn that transfer. The development comes after Minister for Finance Brian Lenihan said earlier this week that the bank would take legal proceedings against former directors over their borrowings. He said some had re-paid, but the bank would be taking legal action to ensure borrowings were re-paid.
