There are so many loose ends after last week’s liquidation of Irish Bank Resolution Corporation which the Government claimed was pre-planned for months, but which appears like a Keystone Cops episode on here. One of those loose ends is David Drumm.
David was the CEO of Anglo between 2005 and 2008 after Sean Fitzpatrick stepped down from the role in 2005 to became Anglo chairman. Both David and Sean left Anglo at the end of 2008, and David headed west to Massachusetts with the advice still ringing in his ears “don’t stay in Ireland, they’ll never forgive you”. David had about €10m in loans from Anglo, so in addition to being at the helm and the object of national ill-sentiment, he actually owed us money. The money went into Anglo shares which were wiped out, so David had financial problems and was in discussion with Anglo, when in a surprise move, he filed for bankruptcy in October 2010.
There followed a flurry of bad tempered legal challenges where IBRC sought to have the bankruptcy declared invalid, and separately IBRC seemed to be considering filing claims for losses. There are quite a few people who regard the pursuit of David as uneconomic and little more than politically-motivated activity aimed at bringing down a deeply unpopular part of the banking collapse. At the end of 2012, Minister for Finance, Michael Noonan refused to provide even an overall total of IBRC’s legal costs, citing commercial confidentiality, but the betting on here is that the pursuit of David Drumm is not economically justified.
But what now for IBRC’s attempts to have David’s bankruptcy declared invalid? Above is the listing this afternoon from the US government’s PACER system – not available without paid subscription by US citizens – which shows that the IBRC action is still extant, as is action by the bankruptcy trustee, Kathleen Dwyer. According to the IBRC liquidation Q&A from the Department of Finance last Friday,
So, the Special Liquidator can continue the legal action, but under normal circumstances, he would have to justify such a move on economic grounds. David has already complied with IBRC’s wishes with re-transferring his share in the former family home in Abington, Malahide which has now been sold to satisfy his debts, and it seems that both US homes, at Stage Neck Road where Charlie Bird paid a visit and in Wellesley, are sold or on the market, again to satisfy the bankruptcy creditors. [UPDATE: thanks to a sharp-eye member of the audience who spotted on US estate agency website Zillow, that the property at 73 Old Colony Road in Wellesley has now been taken off the market] So what is left for IBRC to get from David? And if the answer is nothing, then will we shortly see David set free?