The trial of three former Anglo Irish Bank executives has been hearing evidence that the financial regulator was 'four square' behind a 2008 deal to unwind bankrupt businessman Sean Quinn's 29.3 percent stake in the bank.
Former Quinn Group CEO Liam McCaffrey has given evidence that Morgan Stanley and Anglo Irish Bank's lawyers were also aware of the plans and that no concerns were raised about the legality of the transaction.
Former Anglo Chairman Sean FitzPatrick (65), former head of lending in Ireland Pat Whelan (51) and Anglo's former Finance Director Willie McAteer (63) deny providing unlawful financial assistance to Sean Quinn's family and the Maple ten group of investors to buy Anglo shares in July 2008.
It is the prosecution's case that these loans were outside the ordinary course of the bank's business and were intended to give the appearance of stability in relation to Anglo's share price, which had dipped below 5 euro.
Under cross examination Liam McCaffrey told the jury that his boss 'paid a very high price for investing in that bank'.
The jury heard Sean Quinn lost at least 2.4 billion euro gambling on the share price using a financial instrument known as contracts for difference.
These derivatives have been compared to placing a bet with a bookie on a racehorse rather than buying a stake in the horse itself.
Mr McCaffrey agreed with Pat Whelan's barrister Brendan Grehan SC, that by July 2008, the Cavan businessman reluctantly agreed to dilute his interest in Anglo because the bank would no longer lend him money to bankroll his losses on the CFDs.
The jury has heard loans were issued to members of the Quinn family to unravel 15% of Sean Quinn's CFD stake and convert it into ordinary Anglo Irish Bank shares.
A press release issued on July 15, 2008 by the Quinn family, announcing the deal, was displayed to the court.
Mr McCaffrey gave evidence that investors in the middle east were approached to purchase a further 10% of Sean Quinn's stake but that nobody was interested in buying Anglo shares.
The jury was shown a letter to the bank, in which Sean Quinn complained that he was not sure the Quinn Group had been treated fairly in the July deal.
He expressed the view that there had been a degree of panic and that 'we were in effect forced to sell shares regardless of price'.
Earlier the jury heard Mr Quinn admitted that he had been greedy in his Anglo CFD investments.
The admission was made during a meeting with the then financial regulator Patrick Neary in February 2008.
The minutes of the meeting record that the Cavan businessman said he deeply regretted the situation and that 'Sean Quinn', needed to be reigned in.
He said he had lost money in stocks in 2001 and had committed not to get involved again.
However he was also of the view it would be a mistake to sell his interest in the bank in 'an uncontrolled fashion'.
Sean Quinn was due to begin giving evidence today at Dublin Circuit Criminal Court but his testimony has been put off until Monday.
