Irish Prime Minister Brian Cowen said Friday that he would like the indebted former chief executive of the state-owned Anglo Irish Bank Corp., David Drumm, to return to Ireland from the U.S.
Drumm, 44, resigned from Anglo in December 2008 ahead of the bank’s nationalization, and applied for Chapter 7 bankruptcy in a Massachusetts court on Thursday. Anglo is seeking repayment of loans of around EUR8 million.
The bank rejected an offer made by Drumm to settle his debts, which included an offer to give up his EUR5.4 million pension from Anglo and a half-share in his south county Dublin home in Malahide.
Drumm’s lawyers told Dublin’s Commercial Court on Thursday that their client made a settlement offer to Anglo in writing on September 24, offering to give up all of his assets excluding his clothes and jewelry.
Anglo needs to be recapitalized by EUR34 billion in a worst case scenario and is in the process of transferring about EUR36 billion of property and development loans to the National Asset Management Agency.
Cowen is under political pressure to draw a line under the Anglo saga. Drumm’s bankruptcy proceedings have been criticized as an insufficient response to the banking crisis.
Anglo was nationalized in January 2009. In February 2009, the Office of the Director of Corporate Enforcement searched Anglo’s headquarters in Dublin amid a crowd of onlookers, TV cameras and reporters.
In March 2010, Anglo’s former chairman Sean FitzPatrick and former finance director Willie McAteer–who both live in Ireland–were arrested in connection with alleged irregularities. However, they were released without charge.
In order to extradite Drumm, Irish officials will most likely be required to initiate formal charges against the former CEO. Criminal charges are probably not an option because the Irish government should have charged Drumm at this point if they had the requisite evidence. The Irish Prime Minister most likely wants Drumm extradited or returned to the country in order to collect the debt he owes or bring a civil suit for damages.
Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at email@example.com or at one of the offices listed above.