David Drumm has been arrested in Massachusetts in the United States.
The former Anglo Irish Bank boss is expected to go to court in the country on Tuesday for an extradition hearing.
Mr Drumm moved to the US in 2009, six months after he resigned from Anglo.
Advertisement
He filed for bankruptcy in October 2010, after failing to reach a settlement on his debts.
The Government here has requested that he be extradited to face criminal proceedings.
Earlier this year, the Banking Inquiry agreed not to publish a written statement by Mr Drumm or hear his evidence by video link after concerns were raised by the DPP.
