Sean FitzPatrick
Encyclopedia
Seán FitzPatrick was chairman of Anglo Irish Bank
until he resigned in December 2008 amid mounting revelations over hidden loans
. The scandal contributed to a collapse of the bank's share price which in turn led to the bank's nationalisation on 21 January 2009.
In an RTÉ Radio 1
interview on The Marian Finucane Show
in October 2008, FitzPatrick denied critics' charges that the bank had been reckless in making too many big loans to property developers as Ireland's housing bubble grew. While saying he was grateful for the state's help, he refused to offer taxpayers an apology, saying
FitzPatrick addressed the government in another speech on the same day and recommended cutting spending on what he called the "sacred cows
" of Irish society: children, the elderly and health care. FitzPatrick was declared bankrupt on 12 July 2010.
from 1986 until 2005, when he became its chairman. He resigned from that position in December 2008 when details of secret loans he had taken out with the bank were revealed.
FitzPatrick's loans totaling 155m from Anglo Irish have not yet been repaid, although he has retired on a pension of over 4 million a year. Anglo Irish has slowly been engaged in a series of slow partial write-offs of these loans, leading to claims of protectionism, and there is growing concern over inequality in pursuing debt depending on the status of the person concerned.
Sean FitzPatrick was appointed to a number of positions by Fianna Fáil
politicians. In 1998 the then Minster for the Environment and Local Government Noel Dempsey
appointed FitzPatrick to the Dublin Docklands Development Authority
where he served until 2007. FitzPatrick was also appointed as an non-executive to the Irish airline Aer Lingus
in March 2004 by the prominent Fianna Fáil
politician and then Minister for Transport Séamus Brennan
Both FitzPatrick and the bank said in statements on his resignation that his handling of the loans was neither illegal nor a breach of Irish banking regulations. But an apologetic new chairman O'Connor told shareholders that FitzPatrick's loans were "wrong and unacceptable".
The following day, headlines in the Irish papers illuminated the popular mood: "Seán FitzPatrick Should Go To Jail" competed with "If FitzPatrick Lived In New York, He'd Have Been Arrested By Now".
When he resigned from Anglo Irish Bank, Fitzpatrick also resigned his non-executive directorships at Greencore
, Aer Lingus
, Experian
, Smurfit Kappa Group
, and Gartmore Irish Growth Fund
.
were given a warrant to search Seán Fitzpatrick's house. FitzPatrick was arrested at around 06:30 on 18 March 2010 at his house in Greystones
, County Wicklow
. He was arrested by the Garda Bureau of Fraud Investigation. He was questioned under Section 4 of the Criminal Justice Act 1984. Under this he was able to be held for up to six hours without charge, but this was later extended. The Gardaí were also assisting another investigation by the Director of Corporate Enforcement
for breach of company law. The Gardaí confirmed in a statement that "There is an extensive Garda investigation under way, eager to see justice take its course" In most western countries it is illegal to run a business and seek investment while insolvent. It was not confirmed by the Gardaí at first if FitzPatrick was the person in their custody, but by an independent source and RTÉ
. Following the arrest, without naming FitzPatrick, the Minister for Finance
Brian Lenihan
commented on the situation. After more than 24 hours of questioning, he was released without charge on 19 March 2010. A file was prepared for the Director of Public Prosecutions
.
' cases to answer in relation to their roles in controversial dealings at Anglo Irish Bank and transactions to Irish Life and Permanent, according to reports prepared by John Purcella special investigator. Purcell reports were submitted to the Complaints Committee of the Chartered Accountants Regulatory Board on December 14th 2010, and forwarded to the board’s Disciplinary Committee.
In this context Sean FitzPatrick is tried for:
David Drumm is tried for:
Willie McAteer is tried for:
Peter Fitzpatrick is tried for:
Sean FitzPatrick was declared bankrupt
by the Irish High Court on July 12, 2010. The assets and debts of Sean FitzPatrick are now under the control of the official assignee, Chris Lehane, a court appointed official under the bankruptcy legislation.
Anglo Irish Bank
Anglo Irish Bank was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011. It went into wind-down mode after nationalisation in 2009....
until he resigned in December 2008 amid mounting revelations over hidden loans
Anglo Irish Bank hidden loans controversy
The Anglo Irish Bank hidden loans controversy began in the Republic of Ireland in December 2008 when the chairman of Anglo Irish Bank, Ireland's third largest bank, admitted he had hidden a total of €87 million in loans from the bank, triggering a series of incidents which led to the eventual...
. The scandal contributed to a collapse of the bank's share price which in turn led to the bank's nationalisation on 21 January 2009.
In an RTÉ Radio 1
RTÉ Radio 1
RTÉ Radio 1 is the principal radio channel of Irish public-service broadcaster Raidió Teilifís Éireann and is the direct descendant of Dublin radio station 2RN, which began broadcasting on a regular basis on 1 January 1926...
interview on The Marian Finucane Show
The Marian Finucane Show
The Marian Finucane Show is an Irish radio programme, presented by Marian Finucane. It airs Saturday - Sunday at 11:00 to 13:00. It is the highest-rating weekend radio show in Ireland....
in October 2008, FitzPatrick denied critics' charges that the bank had been reckless in making too many big loans to property developers as Ireland's housing bubble grew. While saying he was grateful for the state's help, he refused to offer taxpayers an apology, saying
FitzPatrick addressed the government in another speech on the same day and recommended cutting spending on what he called the "sacred cows
Sacred cow (idiom)
Sacred cow is an idiom, a figurative reference to sacred cows in some religions. This idiom is thought to originate in American English, although similar or even identical idioms occur in many other languages....
" of Irish society: children, the elderly and health care. FitzPatrick was declared bankrupt on 12 July 2010.
Career
FitzPatrick was chief executive of Anglo Irish BankAnglo Irish Bank
Anglo Irish Bank was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011. It went into wind-down mode after nationalisation in 2009....
from 1986 until 2005, when he became its chairman. He resigned from that position in December 2008 when details of secret loans he had taken out with the bank were revealed.
FitzPatrick's loans totaling 155m from Anglo Irish have not yet been repaid, although he has retired on a pension of over 4 million a year. Anglo Irish has slowly been engaged in a series of slow partial write-offs of these loans, leading to claims of protectionism, and there is growing concern over inequality in pursuing debt depending on the status of the person concerned.
Sean FitzPatrick was appointed to a number of positions by Fianna Fáil
Fianna Fáil
Fianna Fáil – The Republican Party , more commonly known as Fianna Fáil is a centrist political party in the Republic of Ireland, founded on 23 March 1926. Fianna Fáil's name is traditionally translated into English as Soldiers of Destiny, although a more accurate rendition would be Warriors of Fál...
politicians. In 1998 the then Minster for the Environment and Local Government Noel Dempsey
Noel Dempsey
Noel Dempsey is a former Irish Fianna Fáil politician. He was a Teachta Dála for the Meath and Meath West constituencies from 1987 to 2011...
appointed FitzPatrick to the Dublin Docklands Development Authority
Dublin Docklands Development Authority
The Dublin Docklands Development Authority was created by the Dublin Docklands Development Authority Act 1997 to lead a major project of physical, social and economic regeneration in the East side of Dublin along both banks of the River Liffey....
where he served until 2007. FitzPatrick was also appointed as an non-executive to the Irish airline Aer Lingus
Aer Lingus
Aer Lingus Group Plc is the flag carrier of Ireland. It operates a fleet of Airbus aircraft serving Europe and North America. It is Ireland's oldest extant airline, and its second largest after low-cost rival Ryanair...
in March 2004 by the prominent Fianna Fáil
Fianna Fáil
Fianna Fáil – The Republican Party , more commonly known as Fianna Fáil is a centrist political party in the Republic of Ireland, founded on 23 March 1926. Fianna Fáil's name is traditionally translated into English as Soldiers of Destiny, although a more accurate rendition would be Warriors of Fál...
politician and then Minister for Transport Séamus Brennan
Séamus Brennan
Séamus Brennan was a senior Irish Fianna Fáil politician and a Teachta Dála for Dublin South. He served as a Minister of State, Minister for Tourism and Transport , Minister for Tourism, Transport and Communications , Minister for Education , Minister for Transport , Minister for Social and...
Resignation
When news of his secret loans became public and FitzPatrick resigned as chairman, the resulting furore also swept from office Ireland's chief banking regulator, Patrick Neary. FitzPatrick, while Anglo Irish chairman, had borrowed more than €100 million from the bank and hid the loans from auditors for eight years. The former multi-millionaire banker defaulted on the loans following a series of major business setbacks, valuable shareholding in Anglo Irish Bank once worth €80 million is now worthless followed by a failed oil venture in Africa and a stake in a casino in Asia stalled. His property investments in Ireland and Hungary were also hit by the international slump.Both FitzPatrick and the bank said in statements on his resignation that his handling of the loans was neither illegal nor a breach of Irish banking regulations. But an apologetic new chairman O'Connor told shareholders that FitzPatrick's loans were "wrong and unacceptable".
The following day, headlines in the Irish papers illuminated the popular mood: "Seán FitzPatrick Should Go To Jail" competed with "If FitzPatrick Lived In New York, He'd Have Been Arrested By Now".
When he resigned from Anglo Irish Bank, Fitzpatrick also resigned his non-executive directorships at Greencore
Greencore
Greencore Group plc is a food company in Ireland.It was established by the Irish Government in 1991 to take over Irish Sugar, the nationalised sugar production company. 55% of the group was listed on the Irish Stock Exchange that year, over the years additional placements have led to almost 100%...
, Aer Lingus
Aer Lingus
Aer Lingus Group Plc is the flag carrier of Ireland. It operates a fleet of Airbus aircraft serving Europe and North America. It is Ireland's oldest extant airline, and its second largest after low-cost rival Ryanair...
, Experian
Experian
Experian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US...
, Smurfit Kappa Group
Smurfit Kappa Group
The Smurfit Kappa Group is Europe's leading corrugated packaging company, following the merger of Jefferson Smurfit Group and Kappa Packaging. This merger was finalized by the end of 2005...
, and Gartmore Irish Growth Fund
Gartmore Group
Gartmore Group Limited is a British-based investment management business. It is listed on the London Stock Exchange.- History :The Company was founded in 1969 by British & Commonwealth and acquired by Banque Indosuez in 1989. It was first listed on the London Stock Exchange in 1993...
.
Arrest
On 16 March 2010 GardaíGarda Síochána
, more commonly referred to as the Gardaí , is the police force of Ireland. The service is headed by the Commissioner who is appointed by the Irish Government. Its headquarters are located in the Phoenix Park in Dublin.- Terminology :...
were given a warrant to search Seán Fitzpatrick's house. FitzPatrick was arrested at around 06:30 on 18 March 2010 at his house in Greystones
Greystones
Greystones is a coastal town and small seaside resort in County Wicklow, Ireland. It is located on Ireland’s east coast, south of Bray and south of Dublin , with a population in the region of 15,000....
, County Wicklow
County Wicklow
County Wicklow is a county in Ireland. It is part of the Mid-East Region and is also located in the province of Leinster. It is named after the town of Wicklow, which derives from the Old Norse name Víkingalág or Wykynlo. Wicklow County Council is the local authority for the county...
. He was arrested by the Garda Bureau of Fraud Investigation. He was questioned under Section 4 of the Criminal Justice Act 1984. Under this he was able to be held for up to six hours without charge, but this was later extended. The Gardaí were also assisting another investigation by the Director of Corporate Enforcement
Director of Corporate Enforcement
The Office of the Director of Corporate Enforcement in Ireland was set up by the Irish Government on November 28, 2001 as a consequence of the proceedings and the conclusions of various review groups, courts, tribunals of inquiry and parliamentary committees in recent years...
for breach of company law. The Gardaí confirmed in a statement that "There is an extensive Garda investigation under way, eager to see justice take its course" In most western countries it is illegal to run a business and seek investment while insolvent. It was not confirmed by the Gardaí at first if FitzPatrick was the person in their custody, but by an independent source and RTÉ
Raidió Teilifís Éireann
Raidió Teilifís Éireann is a semi-state company and the public service broadcaster of Ireland. It both produces programmes and broadcasts them on television, radio and the Internet. The radio service began on January 1, 1926, while regular television broadcasts began on December 31, 1961, making...
. Following the arrest, without naming FitzPatrick, the Minister for Finance
Minister for Finance (Ireland)
The Minister for Finance is the title held by the Irish government minister responsible for all financial and monetary matters. The office-holder controls the Department of Finance and is considered one of the most important members of the Government of Ireland.The current Minister for Finance is...
Brian Lenihan
Brian Lenihan, Jnr
Brian Joseph Lenihan was an Irish Fianna Fáil politician and barrister who served in the government of Ireland as Minister for Justice, Equality and Law Reform from 2007 to 2008 and as Minister for Finance from 2008 to 2011...
commented on the situation. After more than 24 hours of questioning, he was released without charge on 19 March 2010. A file was prepared for the Director of Public Prosecutions
Director of Public Prosecutions
The Director of Public Prosecutions is the officer charged with the prosecution of criminal offences in several criminal jurisdictions around the world...
.
Irish Life and Permanent transaction 2008
In 2010 it was revealed that Sean Fitzpatrick, David Drumm, and former Anglo Irish Bank finance director Willie McAteer and Peter Fitzpatrick former director of finance at Irish Life and Permanent had 'prima faciePrima facie
Prima facie is a Latin expression meaning on its first encounter, first blush, or at first sight. The literal translation would be "at first face", from the feminine form of primus and facies , both in the ablative case. It is used in modern legal English to signify that on first examination, a...
' cases to answer in relation to their roles in controversial dealings at Anglo Irish Bank and transactions to Irish Life and Permanent, according to reports prepared by John Purcella special investigator. Purcell reports were submitted to the Complaints Committee of the Chartered Accountants Regulatory Board on December 14th 2010, and forwarded to the board’s Disciplinary Committee.
In this context Sean FitzPatrick is tried for:
- Temporarily transferring his loans from Anglo Irish Bank to Irish Life and Permanent to avoid financial statements
- more Irish Life and Permanent transactions in 2008.
- A Willie McAteer loan of 2008
David Drumm is tried for:
- Temporarily transferring FitzPatrick's loans from Anglo Irish Bank to avoid the financial statements
- The Irish Life and Permanent transactions in 2008.
- The alteration of terms for ten key customers
- Loans to four other key management personnel
Willie McAteer is tried for:
- Temporarily transferring his loans from Anglo Irish Bank to avoid financial statements
- The Irish Life and Permanent transactions in 2008.
- Not declaring a loan in 2008
Peter Fitzpatrick is tried for:
- Irish Life and Permanent transactions in 2008.
Sean FitzPatrick declared bankrupt
Former chairman of Anglo Irish BankAnglo Irish Bank
Anglo Irish Bank was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011. It went into wind-down mode after nationalisation in 2009....
Sean FitzPatrick was declared bankrupt
Bankruptcy in the Republic of Ireland
Bankruptcy in Irish Law is a legal process, supervised by the High Court whereby the assets of a personal debtor are realised and distributed amongst his or her creditors in cases where the debtor is unable or unwilling to pay his debts....
by the Irish High Court on July 12, 2010. The assets and debts of Sean FitzPatrick are now under the control of the official assignee, Chris Lehane, a court appointed official under the bankruptcy legislation.
See also
- 2008–2010 Irish financial crisis
- Irish property bubbleIrish property bubbleThe property bubble in the Republic of Ireland began in 2000 and peaked in 2006, as with many other western European countries, with a combination of increased speculative construction and rapidly rising prices....
- Michael FingletonMichael FingletonMichael "Fingers" Fingleton is a former chief executive of Irish Nationwide Building Society. He joined the building society in 1971 and retired in April 2009 as the effects of the banking crisis became apparent. He is known as “Fingers” in the banking community.-Early life and career:Michael...
External links
- Anglo Irish chairman Seán FitzPatrick resigns over 'inappropriate' loan, Philip Aldrick, Daily Telegraph, 19 December 2008
- Ireland to restrict accounts of big Anglo debtors, Reuters.com, 18 January 2009