Over the past week, we have a published a range of exclusive stories, in-depth features and insightful columns on the Davy scandal.
Here is a link to, and a synopsis of, each piece:
Davy told a client it would get him the best possible price. Startling new emails reveal how Davy spun the deal to Patrick Kearney, portraying how it was acting on his behalf while secretly selling his assets to 16 gilded Davy executives.
Director, adviser, broker, co-investor: McLaughlin’s many Malin mandates
Kyran McLaughlin resigned as Davy’s deputy chairman over his participation in a 2014 bond deal where the firm failed to meet its conflict of interest obligations. At the same time, he was personally investing in companies targeted by a Davy client.
Following an approach by Bank of Ireland, the broker is now set to be put up for sale. It follows a dramatic week for the broker, which saw a €4.1m Central bank fine and the departure of three senior executives.
Driven by money: how the “Davy 16” was assembled and how the Anglo bonds deal was pulled off
Within hours of agreeing to sell his Anglo bonds, Patrick Kearney knew something was wrong. But it was too late. Driven by personal gain, a group of 16 people at Davy had secretly pulled off a financial coup. But who were they, and how did the deal come together?
Kyran McLaughlin sent his equities team a memo in November 2007 as the market was turning. Staff were told to think of the firm’s best interests, protect relationships with large corporates, and not jeopardise commissions by spinning negative stories.
The ‘Davy 16’ scandal: 16 questions for the Central Bank
Senior regulators from the Central Bank will appear before an Oireachtas committee today. The Davy scandal will be the dominant issue. Here are 16 questions that legislators should ask the bank.
Brian McKiernan, Kyran McLaughlin and Barry Nangle left their management and board positions at J&E Davy last week but remain central to the stockbroking firm’s ownership and control through a web of companies stretching to the Isle of Man and Gibraltar.
The NTMA decision: Why it happened, how it killed Davy’s bond desk, and what happens next
By withdrawing its support for Davy, the NTMA has precipitated the closure of the broker’s bond desk. But it has also left Davy exposed to an exodus of clients.
As Davy suffers further client setbacks, Bank of Ireland waits in the wings
The decision to shut the bond desk was not just in response to losing the NTMA’s business. A decision by two of the country’s largest fund managers also forced Davy’s hand. Could Bank of Ireland emerge as its white knight?
Davy will be hoping this blows over. Hopefully, it won’t. This is a bona fide scandal. Talk of cultural reform is all well and good, but it is hard to believe and hard to stomach.
No apology from Kyran McLaughlin as he leaves Davy after decades
The deputy chair of Davy has issued no apology as he confirms his resignation. Chief executive Brian McKiernan has however said he “regrets” his role in the deal and damage to Davy’s reputation.
The three senior figures had hoped the storm over the Anglo bond scandal would pass. However, intervention from the NTMA and state has forced their resignations.
“Breach of trust”: NTMA tells Davy it has concerns about broker’s culture, behaviour and values
The state’s debt agency has written to Davy, a long-term advisor on Irish government bonds, outlining its concerns following a damning Central Bank investigation into the broker.
The Central Bank’s €4.1m censure is only the start. Add in the legal bills Davy incurred over a multi-year investigation. Plus, it also paid out a multi-million euro settlement to the developer the firm wronged.
Davy fallout: McKieran forced to reissue Anglo bond statement to staff as NTMA monitors the situation
Amid fears his initial statement breached a Central bank settlement, Davy boss McKiernan has issued a revised statement. Meanwhile, the NTMA has said it is awaiting Davy’s response.
Davy CEO Brian McKiernan was among the “committee” of then powerful senior executives in Davy who approved the transaction, a deal that the Central Bank said was done “without consultation with Davy compliance”.
No heads asked to roll as Davy fined €4 million and criticised for “lack of candour”
In 2015, Tom Lyons exposed a deal involving Davy Stockbrokers and a developer client over Anglo bonds. The story led to a Central Bank investigation, which has found that a group including senior Davy executives prioritised “personal financial gain” at the expense of a client.