A former non-executive director at Anglo Irish Bank has said he was not aware at the time that the bank was providing loans to the Maple 10 to purchase Anglo shares.
Michael Jacob was giving evidence in the trial of former Anglo executives Pat Whelan, Willie McAteer and Sean FitzPatrick who deny providing unlawful financial assistance to the Maple Ten and to the family of former billionaire Sean Quinn to buy shares in the bank in July 2008.
The jury has been hearing just how critical Anglo's position had become by July 2008 as it tried to unwind Sean Quinn's 29% stake in the bank.
Non-executive director Michael Jacob described the Contracts for Difference (CFDs) position of the Cavan businessman as a 'financial gamble' from a 'loose cannon'.
He agreed under cross-examination that despite efforts to woo investors in the US and the Middle East, 'no white knight' appeared to buy up some of Mr. Quinn's position.
He said as a board member he was aware of a plan to shed 9% of the Quinn stake to bank customers but he did not know the names or that the deal was to be financed by Anglo.
He told the court he could not recall receiving a telephone call from the bank chairman Sean FitzPatrick on July 9th, notifying him in advance of the Maple 10 transaction but he said 'I can't dispute it'.
It was his recollection he was informed after the transaction was completed.
'Bank would be gone within a week'
The former CEO of Anglo Irish Bank David Drumm told a Maple Ten developer that if a hole in the bank 'wasn't plugged immediately' the bank would be gone within a week, and that it would probably drag down AIB and Bank of Ireland aswell, a court has heard.
Property developer Brian O'Farrell earlier gave evidence.
Dublin Circuit Criminal Court heard that in 2008 Mr.O'Farrell had been a customer of Anglo Irish Bank for about 15 years.
Pat Whelan, Anglo's head of lending for Ireland was his main contact. He said their business relationship was 'very successful' and that they formed a 'strong bond and friendship'.
He said Mr. Whelan called him up while he was on holidays to organise a meeting, which took place at his home in Malahide at 8.30am on Monday July 14th 2008.
The property developer told the jury that at that meeting Anglo CEO David Drumm asked him if he knew about Contracts for Difference, short-selling and hedge funds and when he replied that he did not, Mr. Drumm spent an hour explaining the terms and then told him that the bank was under attack.
The court heard Mr. Drumm said that a major client, who he did not name, had amassed a 25% stake in the bank through CFDs which had put Anglo in a very bad position.
He said Mr. Drumm told him the bank was going to provide him with money to buy a 1% shareholding in Anglo, and that a group of businessmen were being put together by the bank.
'You will be a friend to the bank'
Brian O'Farrell says Mr Drumm told him "you will probably make no money on this transaction but you will be a friend to the bank".
He said he asked if the deal was legal and was assured Anglo had received legal advice from Matheson Ormsby Prentice that it was in order.
Mr O'Farrell said he also asked who knew about the transaction and was told the Financial Regulator, the Central Bank and the Department of Finance were on notice.
He said David Drumm told him that "if this hole wasn't plugged immediately Anglo would be gone within a week and that they'd probably drag down AIB and Bank of Ireland".
The jury has heard he agreed to the deal there and then.
Asked by prosecution counsel Úna Ní Raifeartaigh if his loans were a factor in his decision, Mr. O'Farrell replied that they were all performing, but added that he was dependant on the bank for future loans.
