The former Chairman of Anglo Irish bank has been arrested as part of an ongoing investigation into alleged financial irregularites at Anglo Irish Bank.

It follows a search of his private residence this morning.

Finance Minister Brian Lenihan says he’s cautious not to prejudice the Garda investigation that’s underway, and is eager to let justice take its course.

The arrest was part of an ongoing inquiry by gardai investigating alleged financial irregularites at Anglo Irish Bank.

Gardaí from the Garda Bureau of Fraud Investigation carried out a search of a private residence this morning.

They arrested Sean Fitzpatrick who is  in his early 60′s and he’s been taken to Bray Garda Station where he can be held for 24 hours.

Gardai were called into investigte Irish financial insitutions 13 months ago.

The investigation has three parts, firstly the transfer of nearly 7.5 billion euro from Irish Life and Permanent to Anglo Irish Bank.

Secondly loans of 451 million euro from Anglo to ten customers, to buy shares which had the effect of propping up the banks market value.

And finally secret loans of 80 million euro to Anglo’s former Chairman.

The bank is refusing to comment on this morning’s development.