Fraud investigators raided the headquarters of Anglo Irish Bank in Dublin yesterday morning, compounding the economic woes of the Irish Republic and helping to send its stock market to a 14-year low.

The troubled bank was raided by the Office of the Director of Corporate Enforcement (ODCE), supported by about 25 police officers. The bank has a significant exposure to the falling British property market.

The regulator said that, among other suspected irregularities, it was investigating the unwinding of significant contracts for difference.

Anglo Irish Bank, which was nationalised last month, is at the centre of a series of corporate scandals. Sean FitzPatrick, its former chairman and chief executive, resigned in December after admitting that he had failed to disclose an €87 million (£77 million) loan that he had repeatedly moved in and out of the bank over eight years.

Anglo Irish is also at the centre of a loans-for-shares scandal involving ten of its biggest clients, and there are allegations of share-price manipulation and of irregularities over loans to its directors, as well as claims that the bank used multibillion-euro transfers from Irish Life & Permanent to boost its deposit base improperly.

About 120,000 people took to Dublin’s streets last weekend to protest against the Government’s handling of the financial crisis afflicting the nation.

Last night the Government vowed to prosecute those who jeopardised the country’s financial stability. Dermot Ahern, the Justice Minister, said: “Legislation is in place to bring to justice those who may have played hard and fast with the financial security of this country. The Government will go after banking chiefs involved in wrongdoing that has tarnished the country’s reputation internationally.

“We operate the rule of law. That provides that whether you have a balaclava, a sawn-off shotgun or a white collar and designer suit, the same rules apply.”

Noel Dempsey, the Transport Minister, said this week that those suspected of wrongdoing would be guilty of “economic treason” if they were found to be culpable.

In announcing the raids yesterday, Brian Cowen, the Taoiseach, promised in the Dáil that the Government would not intervene in the ODCE’s inquiry. He said: “I have consistently made clear that . . . the Government would do nothing to prejudice subsequent criminal or civil proceedings.”

ODCE officials arrived at Anglo Irish’s headquarters at about 9.30am yesterday with a search warrant that had been issued by a court on Monday. A spokesman said that the warrant authorised the regulator to “acquire books, documents and any other materials which may provide evidence”.

Last night Brian Lenihan, the Finance Minister, said that investigations would be “completed in a matter of weeks”.

The Dublin stock index fell below 2,000 points for the first time since May 1995. In mid-morning trade it was down 3 per cent at 1,989, less than a fifth of its value two years ago. It closed at 2,034, down 15 points.

Countdown to raid on Anglo

May 2007 Anglo Irish Bank’s shares peak at more than €17 each
July 2008 A so-called “golden circle” of ten investors secretly buys a 10 per cent stake in the bank
September 30 Government unveils a €400 billion guarantee scheme for six banks, including Anglo Irish
December 18 Sean FitzPatrick, the chairman, resigns and admits he hid more than €80 million in secret loans from shareholders
Decemeber 19 David Drumm, the chief executive, resigns
December 21 Government recapitalises Anglo with €1.5 billion
December 29 Shares plummet to 12 cents
January 15, 2009 The Government is forced to nationalise Anglo
January 16 Shareholders call for the board to be sacked
January 19 Five board members resign
February 10 Irish Life & Permanent’s €7 billion deposit to boost Anglo’s balance sheet is revealed
February 20 Donal O’Connor, the new executive chairman, reveals that it gave loans worth €451 million to ten customers last year to buy shares in the bank. A report finds that Anglo has 15 customers who owe it more than €500 million each
February 24 Investigators raid Anglo’s Dublin offices

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive