Category: Archive

Bank sues its former chief

February 17, 2011

By Staff Reporter

David Drumm resigned last December when it emerged the bank had been keeping loans to directors secret from shareholders.
The bank was nationalized by the Irish government in January and has come to symbolize the decline of Ireland’s “Celtic Tiger” economy.
Legal papers laying out claims against Drumm were filed as it also emerged the bank had issued joint proceedings against both Drumm and his wife, Lorraine.
That legal action relates to a recent move by the couple to transfer property out of their joint names into Lorraine Drumm’s alone.
That would put the property, which was used as a security on a loan to Drumm, out of reach of the bank. The bank’s proceedings are seeking to overturn that transfer.
The development comes after Irish finance minister Brian Lenihan said that the bank would take legal proceedings against former directors over their borrowings.
Anglo reported the biggest loss in Irish corporate history this year when it made a loss of

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