Bankruptcy faces Anglo-Irish Bank's former boss

THE former head of Anglo-Irish Bank Sean FitzPatrick is expected to be officially declared bankrupt on Monday, it was confirmed yesterday.

Lawyers for the former banker, who owes the now nationalised lender more than 100 million euro (83 million), applied to have a special court protection blocking the move lifted.

The Irish Republic's High Court had given Mr FitzPatrick several months to put his financial affairs in order and strike a repayment deal with creditors.

However, in a short hearing yesterday. Justice Brian McGovern agreed to lift the protection from bankruptcy and cleared the way for Mr FitzPatrick to declare himself unable to pay debts on Monday.

The ex-banker, who resigned from Anglo in December 2008 was not in court.

A judge will decide on Monday whether to officially seal the bankruptcy.

Mr FitzPatrick has been embroiled in negotiations with banks, including his former employer, since January 2009.

It is understood Anglo-Irish blocked a proposed settlement deal with the banker's creditors.

He is also at the centre of a massive fraud and corporate mismanagement investigation by garda and watchdog Paul Appleby, the director of Corporate Enforcement.

Mr FitzPatrick was arrested in March and questioned about a so-called bed and breakfast transfer of 7.45 billion euro (6.2 billion) in deposits between Irish Life Permanent and Anglo in 2008. The scheme was devised to effectively conceal the state of the bank's books. No charges have been brought. Mr FitzPatrick's hearing will be listed in the High Court bankruptcy list for Monday. It is expected to be a public hearing.