Former Irish bank chief jailed over crisis-era fraud

Former CEO of Anglo Irish Bank, David Drumm has been jailed for conspiracy to defraud and false accounting. He was accused of transferring huge sums between his bank and another financial institution, sometimes for a few hours, to make the bank’s balance sheet look better. (Reuters)
Updated 20 June 2018
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Former Irish bank chief jailed over crisis-era fraud

  • Judge Karen O’Connor stressed that Drumm was not being jailed for “the financial crisis,” instead “only for the two specific offenses for which he has been convicted.”
  • Anglo Irish Bank required a huge state bailout and was nationalized in 2009, contributing to an economic crisis in Ireland that later forced Dublin to seek an €85-billion-international rescue.

Dublin: A judge on Wednesday jailed a former head of Anglo Irish Bank for six years for carrying out fraud at the start of the world financial crisis a decade ago.
David Drumm, 51, had at an earlier hearing been found guilty of fraud and false accounting at the bank, whose rapid fall from grace epitomised Ireland’s own financial collapse.
Ahead of sentencing, the court on Wednesday heard from the defense that Drumm had acknowledged a “huge error in judgment” over the €7.2 billion fraud.
Judge Karen O’Connor, sitting at Dublin Circuit Criminal Court, stressed that Drumm was not being jailed for “the financial crisis,” instead “only for the two specific offenses for which he has been convicted.”
Drumm had been accused of transferring huge sums between Anglo Irish Bank and another financial institution, sometimes only for a few hours, to make the bank’s balance sheet look better than it was as the global financial crisis took hold.
Anglo Irish Bank required a huge state bailout and was nationalized in 2009, contributing to an economic crisis in Ireland that later forced Dublin to seek an €85-billion-international rescue.
Drumm moved to Boston in the United States shortly after the collapse of Anglo Irish Bank, but was later arrested there and extradited to Ireland to face trial.
Two of Drumm’s Anglo colleagues and the former head of Irish Life and Permanent — the other financial institution involved in the fraud — had already been jailed over the same conspiracy.
Passing sentence on Drumm, O’Connor took into account the five months he had already served in the US custody awaiting his return to Ireland.


China-US trade talks ‘making a final sprint’ — state media

U.S. Treasury Secretary Steven Mnuchin shakes hands with Chinese President Xi Jinping as U.S. Trade Representative Robert Lighthizer, left, and Chinese Vice Premier Liu He, right, look on before proceeding to their meeting at the Great Hall of the People in Beijing, China February 15, 2019. (REUTERS)
Updated 16 February 2019
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China-US trade talks ‘making a final sprint’ — state media

  • US duties on $200 billion in imports from China are set to rise to 25 percent from 10 percent if there is no deal by March 1 to address US demands

SHANGHAI: Chinese state media on Saturday expressed cautious optimism over trade talks between the United States and China, a day after President Xi Jinping said a week of discussions had produced “step-by-step” progress.
Xi made the comments at a meeting on Friday with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Beijing, after a week of senior- and deputy-level talks.
The People’s Daily, the official paper of the ruling Communist Party, said in a commentary that Xi’s meeting with US negotiators had affirmed progress made in previous talks and “injected new impetus into the next stage of the development of Sino-US trade relations.”
The talks “have made important progress” for the next round of negotiations in Washington next week, the paper said in its domestic edition.
“It is hoped that the two sides will maintain the good momentum of the current consultations and strive to reach an agreement within the set time limit,” it said.
US duties on $200 billion in imports from China are set to rise to 25 percent from 10 percent if there is no deal by March 1 to address US demands that China curb forced technology transfers and better enforce intellectual property rights.
In its overseas edition, the People’s Daily said “zero-sum thinking and games where you lose and I win can only create losses for both. Only on a basis of mutual respect and equal treatment, through dialogue and consultation, can we find a solution acceptable to both sides.”
An English-language editorial in the Global Times, which is published by the People’s Daily, said news that China had consulted on the text of a memorandum of understanding “shows the two sides have made unprecedented progress.”
“The MOU and next week’s talks both show that the seemingly endless China-US trade negotiations, like a marathon, are making a final sprint,” it said.
The newspapers cautioned that any agreement would have to be in the interests of both the United States and China.
“There are still obstacles to be overcome, and no one should underestimate how daunting a task the two sides face trying to resolve all the differences that have long existed between them in one clean sweep,” the official English-language China Daily said in an editorial.