The judge in the trial of three former Anglo Irish Bank executives has ruled that the issue of whether the bank obtained legal advice in relation to loans advanced in July 2008 is irrelevant to the guilt or innocence of the accused.
He said the ruling applies to any past references to legal advice and that there should be no further questioning of any witness on this issue.
Anglo's former Finance Director Willie McAteer (63), Pat Whelan (51), the bank's former head of Irish operations, and Anglo's former Chairman Sean FitzPatrick (65) deny charges of providing unlawful financial assistance to 16 individuals to buy shares in the bank in July 2008.
The prosecution claims the loans were issued to give the appearance of stability in the bank.
The 16 individuals are the so-called Maple Ten who have been described as high net worth Anglo customers, and the family of Cavan businessman Sean Quinn, who was once Ireland's richest man.
Dublin Circuit Criminal Court has heard evidence that by 2008 Mr Quinn had secretly built up a 29% stake in the bank through a financial instrument known as Contracts for Difference (CFDs).
Anne Heraty, a non-executive Anglo director at the time, yesterday described her horror on discovering the size of Mr Quinn's
interest in 2007.
The jury has heard evidence of the bank's failed attempts to secure institutional or sovereign investors to take up a percentage
of the Quinn stake.
Ms Heraty said she was informed during a phone call from the bank's Chairman Sean FitzPatrick on the 12th or 13th July that ten individuals would be taking up some of the shares.
Michael O'Higgins SC, for Mr FitzPatrick, today said his client recalled telling her in that phone conversation that the ten were all customers of the bank and that loans were being given to them.
'I just can't clearly recall' she replied.
She agreed that Mr FitzPatrick was a good communicator, and that if any word was to be spread around, he'd pick up the phone and that
that there was no reason to believe this communique in July was any different.
Earlier she said the Anglo board did not have cliques.
On re-examination by Paul Anthony McDermott BL, for the prosecution, she agreed that between March and September 2008 there were challenges in Anglo around funding and liquidity.
'My understanding was that we were always within our ratios', she said.
He referred to her earlier evidence that there was relief when Sean Quinn's position was unwound and he asked her what facts she was aware
of by August 2008.
Anne Heraty said she knew just over 9% of the CFD position had been placed with high net worth individuals and that the Quinns had gone long on 14% by turning them into shares.
She said she was not 'one hundred per cent clear' but she thinks she knew bank money had been used, but she wasn't aware of the recourse on the loans or the identity of the ten individuals.
The jury is now hearing evidence from Donal O'Connor, who succeeded Mr FitzPatrick as Anglo's Chairman.
