Every single action by the Financial Regulator was consistent with it approving a €7 billion deal allegedly designed to mislead the markets, a trial has heard.

Four former executives from Anglo Irish Bank and Irish Life & Permanent (ILP) are accused of conspiring to defraud investors about the true health of Anglo is now in its closing stages.

Denis Casey (56), from Raheny, Dublin, Peter Fitzpatrick (63) of Convent Lane, Portmarnock, Dublin, John Bowe (52) from Glasnevin, Dublin and Willie McAteer (65) of Greenrath, Tipperary Town, Co Tipperary have all pleaded not guilty at Dublin Circuit Criminal Court to conspiring together and with others to mislead investors by setting up a €7.2 billion circular transaction scheme between March 1st and September 30th, 2008 to bolster Anglo's balance sheet.

On day 73 of the trial, Michael O’Higgins SC, defending ILP’s former chief executive Denis Casey, described the Financial Regulator as “the policeman of the financial world.”

He said that while the regulator didn’t sponsor or approve the €7.2 billion deal in advance, “every single action and inaction post September 30 is 100 per cent consistent with approving. Why was the regulator, why was the policeman, doing that?”

“It is a reflection of extraordinary measures taking place in extraordinary times.”

Barge pole

He said his client was very clear to gardaí that he “wouldn’t have touched this transaction with a barge pole if I didn’t think the Financial Regulator was backing it”.

He said that there were two transactions in this case – one that his client and ILP authorised which was to be risk-free and secured, and another which was the one Anglo reported on its balance sheet.

“Anglo weren’t stumbling into these transactions. They wanted them on a particular basis,” counsel said.

He said that it was the case that if the jury acquitted the accused from Anglo it must acquit his client, but added that “very plainly the opposite does not follow.”