Property developer Paddy Kearney, who sued Davy
Kearney was told just after doing the deal that he could have got a much higher price of 32c in the euro, but by then it was too late. He later sued and the firm settled the case.
Davy was last week fined €4m by the Central Bank over the episode. It was the largest financial penalty ever imposed on an Irish broker.
The Central Bank has not named the 16 people involved in the bond deal, but key players at the firm include some of the leading figures in the financial world in Dublin. Among the luminaries who quit in the days after the fine was imposed was the deputy chairman Kyran McLaughlin, a 75-year-old veteran dealmaker who in the past was described as the “most powerful man in Irish stockbroking”.
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No suspected criminal activity found at Davy, Oireachtas told ‘Live supervisory matter’ but regulator declines to say if action likely against individuals
Tue, Mar 9, 2021, 16:28 Updated: Tue, Mar 9, 2021, 21:44
Central Bank director general of financial conduct Derville Rowland said on Tuesday that the regulator did not find any suspected criminal activity when investigating Davy for market-rules breaches.
The organisation is obliged by law to report any suspected incidents of criminality to An Garda Síochána and the Office of the Director of Corporate Enforcement (ODCE) that it comes across.
“I can confirm that in the course of this very meticulous and careful investigation, we did not form suspicion to support reports to other agencies,” Ms Rowland told the Oireachtas finance committee on Tuesday. Both she and the bank’s deputy governor, Ed Sibley, faced questions on the Davy scandal.
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Davy crisis: Firm shuts bond desk, says no one linked to controversial deal is still at firm NTMA earlier pulled Davy’s ability to act as primary dealer of Government bonds
Tue, Mar 9, 2021, 04:45 Updated: Tue, Mar 9, 2021, 19:47
Davy said on Monday evening that it had closed its bond desk, resulting in four redundancies, as it raced to contain a growing crisis triggered by a €4.1 million Central Bank fine and rebuke over breaches of market rules in relation to a 2014 bond deal.
The brokerage said that, following the move, none of the 16 individuals involved in the controversial trade was working for the firm.