Former Anglo CEO being taken to court by Anglo

Drumm not the Fitz.

Drumm transferred certain properties into his wifes sole name. These properties are security for some of the €10m of loans he has out from Anglo in his name .

Anglo are taking him and his wife to Court to protect their security . ( It was on Drivetime around 4.45pm)

Statute of Frauds 1634 strikes again

How does oe even do that?
Surely you need the banks permission to transfer the ownership of properties that
are security for a loan?

I’m assuming that the properties weren’t security, e.g. there wasn’t a mortgage on them.

There might have been some other form of guarentee.


if assets were secured then he couldn’t do it and would be no benefit anyway as bank has a fixed charge. perhaps bank had other floating charges but I imagine there might be a personal guarantee there and he was trying to reduce his assets in contemplation of any bank action to recover under that

statute of frauds voids any disposition designed to frustrate claims or potential claims of creditors - proper old school far reaching legislation that is going to catch out lots of these types of transactions

It will be very interesting to have a recent and publicised decision in this area.

There will be a lot of guys (and their wives) paying close attention to this one.

Here’s hopeing it gets the right judge :confused:

As we saw from the Zoe case, it could go to a total numpty, or a potential holder of the ‘Order Of The Pin, 1xt Class’

Phew, it is only €8m not €10m thankfully .

Would she be also liable for stamp duty, or gift tax ?

{puts on pedant hat} Statute of Frauds (Ireland) Act was 1695 - I think the Statute of Uses was 1634.
The SoF deals with contracts and their enforceability, rather than a transfer between a husband and wife tho’, no? The fact that the property was charged would mean the bank would have to have consented to the transfer. Any proper lending institution would require a guarantee from the transferor in those circumstances.

A transfer between husband and wife doesn’t attract stamp duty or other any form of taxation

No Stamp Duty payable on transfer of family home spouse to spouse and no CAT (gift tax) limit spouse to spouse.
No doubt Anglo will hire a limo to ‘take him to court’.

Lets hope he gets a Tier 1 commercial court judge seeing as half of Nama are watching .

Is this the guy who sold up and headed to the US?

Cape cod or somewhere?

Does he have any assets left in the state?

Ultimately, the underwriters of Anglo’s director and officers insurance policy may have to pay out on claims from third parties. These may well end up becoming massive insurance claim settlements. The fraud card is very 50/50 but a heavy hitting legal brief team representing third parties will run with these claims, all the way to full settlement awards. It is alleged AIG were/are the underwriter? :unamused:

Anglo Irish Bank has launched legal proceedings against the bank’s former chief executive David Drumm in an attempt to recover unpaid loans of €8 million and overturn the transfer of a Co Dublin property into his wife’s name.

But will they get anything?

[mod edit: merged Traezoidal scheme’s post in, thanks]

Den, den, den, dum, de, den, dum, de, den-den…

I can’t help humming this little ditty:

Don’t think much of your musical taste!
However, back on subject, this is a political case against Drumm and it may actually backfire in their faces. While banks have aright to call a loan at any time, they have to have a bloody good reason for doing so. My information relating to this loan is that it was not in breach, interest having been paid fully up to date, with the loan not falling due until 10th january 2010. At that point repayment terms were to be discussed.
It will be an interesting one. My money’s on Drumm causing Anglo some severe embarrassment. Anyone care to match €100 to charity?

A house down the road from David Drumm is going for $694 per sq ft. That would value Drumms house at $3,331,200 which would represent a drop of 28% on the price he paid. The guy can’t catch a break. … m-MA-02633 … 13962.html