Bloomberg News

Ireland’s Lenihan to Meet Irish Life CEO Casey Today

February 12, 2009

Ireland’s Finance Minister Brian Lenihan is to meet with Denis Casey, the chief executive officer of Irish Life & Permanent Plc today, the ministry said.

Lenihan said today that a transaction last year between Irish Life and Anglo Irish Bank Corp. may have created a “false impression” about Anglo Irish’s deposit base.

An Irish Life subsidiary transferred funds to Anglo as a customer deposit, after Anglo first placed money with Irish Life. Irish Life described the transfer as “exceptional” support to Anglo Irish, and said it was fully accounted for in its books and returns to the financial regulator.

The revelations came as Ireland’s government sought to shore up confidence in its banks, with a 7 billion-euro injection ($9 billion) of funds into the country’s two biggest lenders, Bank of Ireland Plc and Allied Irish Banks Plc. The Irish Financial Index (ISEF) has dropped 94 percent in the last year on concern that a contracting economy will push up bad debts.

John Gormley, whose Green Party is a member of the governing coalition, said in the parliament in Dublin today that he expects resignations as a result of the Irish Life and Anglo Irish transfer of funds.

“The latest revelations at Irish Life and Anglo Irish will also result in resignations,” Gormley said. The fund transfer was “not appropriate support.”

Irish Life spokesman Ray Gordon declined to comment on the meeting today.

The stock fell 15 percent to 1.65 euros in Dublin today. The company has a market value of 456.7 million euros.

To contact the reporters on this story: Louisa Nesbitt at lnesbitt@bloomberg.net

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net


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