U.S. detention hearing for ex-Anglo Irish Bank CEO delayed

Reuters News
Posted: Oct 15, 2015 3:35 PM

BOSTON (Reuters) - The former head of Anglo Irish Bank will spend another 10 days in jail as U.S. authorities debate whether to send him back to Ireland to face criminal charges arising from the bank's collapse, after his lawyers obtained a delay in his bail hearing.

The executive, David Drumm, asked a U.S. district court in Boston on Thursday to reschedule until Oct. 26 a hearing to determine whether to release him ahead of an extradition hearing to give his attorney more time to gather information from Irish lawyers, according to a court filing.

Drumm was arrested on Saturday in the Boston suburb that he moved to after the bank was nationalized in early 2009, a takeover that cost Ireland some 30 billion euros (currently $34 billion) in bailout funds.

His attorney, Tracey Miner, indicated in a brief court appearance on Tuesday that she planned to seek Drumm's release as he prepares to context the extradition, a process that could take three to four months.

Prosecutors said they planned to ask that Drumm, who faces charges related to fraudulent loans the bank made in 2008 to prop up its share price, remain in custody until the extradition matter is settled.

An Irish court in July sentenced three lower-ranking executives of the bank to 18 to 36 months in prison, making them the first bankers jailed since the country's financial crash.

The U.S. magistrate judge hearing the case, Donald Cabell, noted that there is a strong bias in U.S. law toward holding a suspect who faces possible extradition in custody.

Drumm faces 33 criminal charges in Ireland related to the bank's collapse, including forgery, conspiracy and false accounting, according to U.S. court papers.

(Reporting by Scott Malone; Editing by Steve Orlofsky)