Anglo’s former Director of Treasury claims he was instructed to ask Irish Life & Permanent to deposit €7bn with it ahead of its 2008 end of year report.

Matt Cullen has been giving evidence in the trial of four former bankers accused of misleading investors and depositors in Anglo Irish Bank.

When Anglo’s shares plummeted in March 2008, Matt Cullen said a decision was made to show a “strong corporate number” for their half-year report. In other words, they wanted the market to see the bank was secure.

He said it was difficult to get funding at the time, and he was asked to approach other Irish banks for help.

He said that led to a back-to-back transaction with Irish Life & Permanent, whereby Anglo transferred €750m that was directed back via Irish Life Assurance as a corporate deposit.

Mr. Cullen said Anglo’s Chief Executive David Drumm later asked him to secure a similar transfer of up to €7bn before their end-of-year report, and he subsequently authorised it.

Willie McAteer – Anglo’s former Finance Director, John Bowe, who used to be responsible for funding Anglo, Denis Casey – former Chief Executive of Irish Life & Permanent and its former Group Director Peter Fitzpatrick all deny conspiring to defraud investors and depositors.

The trial of the four former bankers accused of misleading investors and depositors in Anglo Irish Bank got underway this afternoon.

For only the third time in the history of the State, an enlarged jury of 15 people has been sworn in to hear a criminal trial.

They have heard the case is set in an "era of financial turbulence" and they have been told they will be brought back to a time of "economic difficulty and despair".

The first of around 100 witnesses began giving evidence this afternoon.