Three former bank executives are to stand trial charged in connection with a €7.2 billion fraud.

Irish Life and Permanent (IL&P) former Chief Executive Denis Casey and its former Finance Director Peter Fitzpatrick, along with Anglo Irish Bank’s former Head of Capital Markets John Bowe were released on bail after the hearing at Dublin District Court.

They were each released on their own bond of €1,000 and an independent surety of €10,000, with conditions stipulating they are to sign on once a week.

The court heard the three men, dressed in suits and ties, were arrested in the city centre by appointment this morning, and replied 'no' when charged after caution at the Bridewell Garda Station.

It is alleged that between March and the end of September 2008, the former bankers took part in a conspiracy to defraud by engaging in transactions between IL&P, Irish Life Assurance and Anglo Irish Bank.

The charges allege the purpose of the transactions was to create a false and misleading impression to depositors and investors that Anglo had €7.2 billion more in deposits than it really had.

John Bowe is also accused of false accounting under the 2001 Criminal Justice Theft and Fraud Offences Act.

It is alleged that in December 2008 he furnished false or misleading information to the market about Anglo's finances.

His solicitor Dara Robinson told the court the married father of three had engaged with gardai and that this was 'not a case of self enrichment' but a 'case of alleged misbehaviour in the context of the banking system'.

The DPP has directed trial on indictment and the three men are to appear in court again on March 12th for service of the book of evidence.