Former Anglo Irish Bank chief executive David Drumm has failed in his bid for bankruptcy in the US.

A Boston Judge has ruled that Mr Drumm should not be allowed to walk from his debts of more than ten million euro.

Seven months after David Drumm's Boston bankruptcy trial, a US Judge last night rejected his bid for a fresh financial start..

In a damning 122 page ruling - Judge Frank Bailey -said that the 48 year old had made statements to the court that were "both knowing and fraudulent" and that the former Anglo Irish Bank boss - had been "not remotely credible."

He rejected his application to write off more than ten million euro of debt on the grounds that "Such conduct disqualifies a debtor from the privilege of a discharge in our system of bankruptcy,"

Drum's former employer, the defunct Anglo Irish Bank, now nationalized and known as the Irish Bank Resolution Corporation had sought to block his release from debt in the US.

Mr Drumm filed for bankruptcy in Boston in 2010 after failing to reach a settlement with his former employer over debts of nine million euro mostly from loans to buy shares in the failing lender.

IBRC claimed that the former banking boss made fraudulent transfers of over a million euro to his wife Lorraine in a bid to shield cash and assets.

It was Mr Drumm's defense that he forgot to include transfers when he filed for bankruptcy something Judge Bailey rejected, insisting the former CEO was "no bumbler."

In a big win for the state owned financial institution - Judge Bailey ruled that they - along with the court appointed trustee had "established cause to deny him a discharge many times over."

The former Anglo boss is now facing further legal action from the bank - who can pursue him for past and future earnings.