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Thursday, December 2, 2021

Seán FitzPatrick, the former president of the failed Anglo Irish Bank, dies

Banker Seán FitzPatrick, who represented the prosperity and depression of the Celtic Tiger in Ireland, died of a heart attack at the age of 73.

The outspoken financier was taken to the hospital after a sudden illness last week. He turned Anglo Irish Bank into a financial giant, which suffered a serious collapse after reckless loans and questionable accounting practices. According to his family, he died on Monday.

After the global financial crisis exposed a huge liquidity crunch, FitzPatrick still does not repent of his role in contributing to a crisis that plunged the banking industry into a 64 billion euro rescue plan.

“He went from a poster boy for the Celtic Tigers to a whipping boy for national collapse,” Simon Caswell, author Anglo Republic, Undermining the inside of Irish banks, Told the Financial Times. “He is a symbol of the prosperity and depression of the Irish banking industry.”

FitzPatrick-his friends are called “Seánie” and “Fitzie” at work-he joined the third largest bank in Ireland in 1974. With the expansion of the bank, he quickly rose to the top, serving as the head of Anglo Irish Bank Corporation from 1986 to 2005, as the executive officer, from 2005 as the chairman, until 2008, when the bank fell apart and left in shame.

He advocated a rapid loan approval model when the valuation of Anglo Irish Bank, Ireland’s third largest institution, soared from about 600 million euros in 2000 to 13 billion euros in 2007, reaching its peak.

The gorgeous projects of real estate developers are transforming Ireland from the mid-1990s to the mid-2000s, a period that earned the country the nickname of the Celtic Tiger and became the bank’s largest customer. With the rapid development of the country’s economy, Anglo Irish has earned the reputation of being the developer’s favorite organization.

But his success soon collapsed. Facts have proved that Fitzpatrick has been concealing personal loans of tens of millions of euros from the books of accounts for many years. This practice is considered unethical but not illegal. Unlike his successor David Drum and other senior figures in the banking industry, Fitzpatrick has never been convicted or imprisoned.

He was acquitted in 2017 after a 127-day trial on criminal charges suspected of misleading the auditor.

Patrick Honohan, the former central bank governor, stated in 2015 “Unwise, not crime” The bankers’ actions triggered a crisis, and their “unscrupulous and reckless” actions were behind the collapse of the Irish economy.

Carswell said that when the financial crisis came, Anglo Irish’s reckless lending caught up with it, losing 1 billion euros a day, prompting the government to intervene. FitzPatrick had already made a fortune by accumulating stocks in the bank, even though he was declared bankrupt in 2010.

The Irish Times said the bank was “losing money in the old-fashioned way” Make crappy loans one by one“. It needs 29.3 billion euros in bailout funds-almost half of the money injected into the country’s banks to prevent them from going bankrupt.

But FitzPatrick told interviewers in 2011 that he couldn’t “Say sorry in any sincerity or dignity” He blamed the bank failures on global problems.

As a young rugby player and avid golfer, Fitzpatrick has kept a low profile in recent years.

For fear of speaking badly about the deceased, many figures in the Irish financial community declined to comment. One person said that in the end, “for himself and the country, he is almost a tragic figure.”

This article has been revised to reflect that Patrick Honohan’s term as central bank governor began in 2009

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