Media speculation suggests that the Financial Regulator (FR) is investigating the placing of a €4 billion deposit with Anglo Irish Bank before the end of the bank’s financial year by rival lender Irish Life Permanent (ILP).
The deposits were repaid around ten days later. The deposit also allowed the bank to show a higher level of deposits on its books on the day the auditors assessed the bank’s accounts.
ILP confirmed on Tuesday that it placed deposits with Anglo Irish during September 2008 and, in particular, on September 30th following the Government guarantee scheme.
ILP issued a statement which included 'During a period of unprecedented turmoil in global financial markets there was an acceptance that financial institutions would seek to provide each other with appropriate support where possible.'