The former chief executive of Irish Life Assurance has told a trial into alleged market deception offences that he only learned about a billion euro deal with Anglo Irish Bank through media reports months later.
Four former senior bankers from Anglo Irish Bank and Irish Life & Permanent (ILP) are on trial for allegedly conspiring to mislead investors by setting up a €7.2 billion circular transaction scheme to bolster Anglo’s 2008 balance sheet.
Peter Fitzpatrick (63) of Convent Lane, Portmarnock, Dublin; John Bowe (52) from Glasnevin, Dublin; Willie McAteer (65) of Greenrath, Tipperary town, Co Tipperary; and Denis Casey (56), from Raheny, Dublin have all pleaded not guilty at Dublin Circuit Criminal Court to conspiring together and with others to mislead investors through financial transactions between March 1st and September 30th, 2008.
The jury has already heard evidence that, in a series of allegedly circular transactions, Anglo loaned €7.2 billion to ILP and ILP then placed, on behalf of Irish Life Assurance (ILA), the same money with Anglo.
The transactions were accounted for on Anglo’s end of year balance sheet as part of its customer deposits figure, a figure used to measure market and consumer confidence in a bank.
On day 59 of the trial, Kevin Murphy testified that he only became aware of the deals “generally” from media reports in February 2009 of a significant transaction between the two banks. He said he received detailed information about the deal when he was contacted by the regulator for life assurance companies who requested details.
Mr Murphy agreed with Paul O’Higgins SC, prosecuting, that the transactions had never come to the attention of the board of ILP.
“In my view, given the size, they should have come to the board of ILP for discussion,” he said.
Asked if he had ever heard the phrase “green jersey agenda”, Mr Murphy said his only knowledge was that it was mentioned during a meeting in early 2008 between the entire board of ILP and Pat Neary, the then financial regulator.
“At some stage. he indicated to us and encouraged us to co-operate with other Irish banks to manage various stresses and strains that had gripped Irish banks,” he said.
The jury heard that. in mid 2009, Mr Murphy succeeded the accused Mr Casey as ILP group chief executive.
The trial will continue in evidence before the jury on Tuesday in order to allow a legal issue to be dealt with in its absence.
Judge Martin Nolan told the jury that they were getting “close to the end of the State’s case”. He told them that things were moving at a “steady if not rapid pace”.
