Brian Lenihan Jnr (Dublin West, Fianna Fail)

Anglo Irish Bank and the National Asset Management Agency, NAMA, are pursuing all debts owing to them. They are examining spousal transactions and ensuring they are set aside. There is legal provision for setting aside any transaction where assets are transferred to a spouse for the purpose of defeating the rights and just claims of creditors.

Regarding Mr. Drumm, the former CEO of Anglo Irish Bank who was mentioned specifically by the Deputy in terms of recovering outstanding debts, his outstanding liabilities to the bank are €8.5 million. The process has been ongoing for some months, with Anglo Irish Bank having instituted proceedings against him. The bank has sought to maximise the return for it and the taxpayer. The tactics adopted by it and its legal team are a matter for them in the day-to-day operation of the bank. I have been clear that the bank should pursue all debts owing to it and Anglo Irish Bank has instigated proceedings to achieve this.

While Mr. Drumm made settlement proposals, what was offered to the bank would have left a severe shortfall in the region of €4 million to be borne by the taxpayer, which was not acceptable to the bank. Its priority throughout has been to ensure that Mr. Drumm discharges the full amount due, even if that was spread over a number of years.

It is important to note that, beside the settlement of the bank debts, the bank was also seeking to ensure Mr. Drumm's full co-operation with the various investigations ongoing into the previous regime at the bank and was also seeking to ensure that, where there was a shortfall between the value of his assets and the debts outstanding, future earnings could be used to repay those debts. The bank sent its latest offer on 8 October. Mr. Drumm's representatives had not responded to this counter offer when he decided to file for bankruptcy in the US. It is now a matter for the bank and its legal team to assess this latest development and take whatever action is necessary to protect the bank and taxpayers' interests. The bank remains in contact with the National Treasury Management Agency on the issue as it progresses it and is keeping the latter briefed on the various proposals.

See this speech in context