Irish central bank to investigate audio of senior bankers laughing at regulators
Irish central bank has power to prosecute some criminal offences through courts, can refer others to police for prosecution
Ireland’s central bank will investigate whether tapes of senior bankers laughing at regulators contain evidence rules were broken during the 2008 rescue of failed lenders that eventually led to the country’s EU bailout.
The central bank said it would liaise with police over the probe into whether breaches of regulatory requirements had occurred. “The Central Bank is carefully studying the various transcripts emerging. This is something that is viewed very seriously,” it said.
The central bank has the power to prosecute some criminal offences through the courts and can refer others to the police for prosecution.
Public outrage is growing in Ireland after a newspaper published transcripts of taped telephone conversations between executives of the now-defunct Anglo Irish Bank, wrecked when a property bubble burst in 2008 after years of reckless lending.
Rescuing Anglo and two other banks eventually cost taxpayers some 30 billion euros (HK$303.6 billion), almost one-fifth of annual output, devastating the economy and forcing Dublin to take an 85 billion euro (HK$860.2 billion) IMF/EU bailout in late 2010.
The central bank did not say which rules may have been broken, but some of the taped conversations have been widely interpreted to mean that Anglo Irish underplayed the likely cost of rescuing it in order to secure the central bank’s support.