The Financial Regulator (FR) issued a statement yesterday to reject the claim that it was aware of any so called 'sweetheart deal' relating to the purchase of Anglo Irish Bank shares in 2008.
The FR has confirmed it is investigating €300 million in loans given by Anglo Irish Bank to 10 business people to buy its own shares. Media speculation suggests the bank loaned the money to ten unnamed clients last year so they could take a 10 per cent stake in the bank that was originally part of a holding assembled by businessman Seán Quinn and his family.
The FR confirmed it was aware of the issue before the bank was nationalised earlier in the month but not before then.
The FR stated it is currently investigating the unwind of a large Contract For Difference (CFD) position in Anglo Irish shares, with a view to pursuing and assisting in whatever action is necessary including appropriate legal proceedings.