The Anglo Tapes


and then they were offering junk collateral that ECB wouldn’t have accepted. If you are in trouble and you have no decent collateral to put on the table then that speaks volumes; either you don’t have decent quality assets or you are trying to dump junk on to the regulator.
I may not know anything about regulating but I have a feel for my own area of interest. Part of it is because it is my business to know it and part of it is curiousity.
The guys in the central bank/ifsra must have been 9 to 5ers who had no interest in anything except a pensionable position.
That guy Bowe appeared to know his business and the business of BoI, AIB and fingers inside out and would have been well worth exceeding a 500k salary cap in the public sector just to keep the guys honest if you could trust him to kept “bought”. With the likes of Drumm gettign paid millions per year it would have been hard to keep them in the public sector and not defecting back to the private sector.


Patrick Neary - the CV … 85855.html

dropped out of UCD, ended up in Central Bank.


Did he ever even run a juice bar?


yes in 2012
In 2010 … 33100.html

this is 2 years after the guarantee. The numbers were even lower in 2008.
Regardless of the numbers there was no one doing there job as the Nyberg report highlighted … report.pdf


Interesting timing for that article: 18 March 2007. Presumably it was positioned close to this articleon the same day in the same paper.

But what can y’do? It was a global issue rather than a local problem.


Anglo, INBS and Permo were certainly being monitored on a weekly if not daily basis at that time - we know this from some report or other, IIRC Gavin Sheridan put extracts from the reports up on his blog.


Dropped out of UCD? Lightweight.
Sure Drummer didn’t even sit the leaving cert: … 81731.html


Anglo Irish Bank specifically favoured people with limited educational qualifications because they were viewed as more streetwise and hungrier - Seanie has said as much.

The real issue here, however, is about the Central Bank having no problem giving approval to such go-getting, streetwise, “university of life” types (to be rude, Del Boys, basically) occupying senior positions in banks.

That said, bear in mind Wall Street had no shortage of quants and PHD’s (literally rocket scientists) in senior positions, but it didn’t help them much, did it.


He was so out of his depth, he doesn’t even understand that he was never successful in any meaningful way. He was successful by running risks he was too ignorant and poorly trained to understand.

I’m reminded of Twain’s observations on bravery:

Drumm was a flea, not comprehending that he was achieving results by running major risks. He wasn’t even “ballsy”, I suspect (i.e. running extravagant risks for extravagant rewards). He thought he was running a bank, and was surprised when it blew up. He’d probably do it all again the same way.

Anglo bankers weren’t bucaneering, they were just stupid and ignorant.

The horrible bit is he’s so typical of an anti-intellectual tendency in Irish society. Read that Independent article, and you recognise a depressingly familiar profile.


Does statute of limitations apply to any crimes that may have been committed here?
Not a legal head, google throws up 6 years e.g. for Limitation of actions of contract and tort and certain other actions: … html#sec11
but I think fraud is an exception.
Might explain the timing of the leaks though, if there is a ticking clock.


The PhDs didn’t save Wall Street banks, but there was a demonstrated correlation between how much banking experience was found on the non-executive board and how likely the bank was to survive the bust.

Consider the Lehman’s board:

  • Richard S. Fuld, Jr., Chairman and Chief Executive Officer - holds both positions of CEO & Chairman, weakening governance control
  • Michael L. Ainslie- CEO of Sotheby’s, before that Chief Executive Officer of the National Trust for Historic Preservation
  • John F. Akers - ex IBM, he was president between 1983 and 1989, the CEO from 1985 until 1993; and chairman between 1986 and 1993; ** Steve Jobs described Akers as "smart, eloquent, fantastic salesperson, but he didn’t know anything about product.”CNBC has named Akers as one of the “Worst American CEOs of All Time”, **
  • Roger S. Berlind- **a New York City theatrical producer and director **, In 2009, he was inducted into the American Theatre Hall of Fame
  • Thomas Cruikshank was chairman and CEO of Halliburton Energy Services from 1989 to 1995. He previously served as President and CEO from 1983 to 1989
  • Marsha Johnson Evans a retired Rear Admiral in the United States Navy. Since her retirement from the Navy, Johnson has served as executive director of the Girl Scouts of the USA (1998–2002), president and Chief Executive Officer of the American Red Cross (2002–2005) and was the interim commissioner of the LPGA for three months in 2009.
  • Sir Christopher Gent the former chief executive officer of Vodafone
  • Roland A. Hernandez, Founding Principal and Chief Executive Officer of Hernandez Media Ventures since January 2001… broad public company board experience including in the hospitality industry.
  • Dr. Henry Kaufman President of Henry Kaufman & Company, Inc., a firm established in April 1988, specializing in economic and financial consulting… For the previous 26 years, he was with Salomon Brothers, all sounds good, but, then you read that he invested in Madoff. He was also 81 years of age in 2008.
  • John D. Macomber, the principal of JDM Investment Group and was the President of the Export-Import Bank of the United States from 1989 to 1992. He was a Senior Partner at McKinsey & Co. until 1973, he was also born in 1928, so when Lehman blew up Macomber was 80 years old.

There was really no effective banking oversight possible from the Lehman Brothers board. The most qualified banker on the board was Dick Fuld, who was the CEO. The two people with the most finance experience were 80 years old or more. There were some other general business people, but not from finance domain. And then you had people like the Rear Admiral and Theatre Producer, who surely added colour to the board, but were in no position to provide oversight.

If you looked at the boards of banks that fared better, you find that they had real banking experience on the board, and thus there was the capacity for risk evaluation and oversight at nonexecutive board level.

Though the text above is all my own (except where quoted from the linked articles), the idea is not, and credit for the observation and analysis is due to Nuno Fernandes (who has written a paper on the topic).


A 40-hour week??? What kind of a right-wing slave driver are you dipole?

The staff of the central bank went on strike at the height of the crisis in 2009 over proposals to increase their working week from 32.5 hours to 35 hours.



This is what Irish regulator was missing in 2008. In fact most of Europe is missing these folks. The Fed and the FDIC and the Comptroller of the Currency in the US keep several hundred on staff between them. I’d guess that even today, Europe has hardly any of these bods.


[pedant]9 to 5 is a 35-hour week (lunch time is excluded)[/pedant]


Excellent post, Col. Max


When I was in secondary school the guys who were picked out by the life assurance companies and the actuarial companies to be trained without degrees were usually sh1t-hot academically and especially at maths. I am guessing Drummer was fairly handy if he went straight into Deloitte to train as an accountant. Whether he sat the leaving cert is a bit irrelevant.


I’d agree with the shit hot academic reputation that actuaries have.

But actuary is nothing like accounting in terms of difficulty. It would be a mistake to compare their difficulty. And I’m a chartered accountant.

In those days once you landed a job with a firm, there was probably little point in getting the leaving cert since the only reason you wanted it was to get a job anyway.


I am a few years younger than Drumm and also an accountant…while the direct entry route to the profession was still relatively common back then, I am almost positive that there was a requirement to have attained a minimum of 18 points in the Leaving (around the equivalent entry requirement for an Arts degree back then). This Drumm never sat the Leaving story is looking a bit fishy to me. Maybe it’s a crock of shit he told Seanie to impress with his streetwise “university of life” credentials.


Mrs Slasher’s now retired old man went in that way and he did the Leaving; I can’t imagine a relative whippersnapper like Drumm not doing the Leaving unless there were some highly unusual circumstances. Unless his father was a partner


On the Marian Finucane program Sunday, Niall O’Dowd said that Drumm had told him he’d definitely sat his leaving. About 20mins in - WARNING: Martin Manseragh is on the podcast just before this.

Need to be very careful with Indo journalism, even though they’ve been given credibility by having for once a solid information source they’re still the Indo.