A Dublin judge granted bail to David Drumm hours after his arrest today at Dublin Airport.
Prosecutors, police and fraud investigators had argued that he should be denied bail.
Drumm faces up to 10 years in prison if convicted on 33 charges connected to the Dublin bank's hiding of massive loans and losses from shareholders.
Ireland nationalized Anglo in 2009, seized control of its toxic property portfolio and ultimately dissolved the bank at an estimated cost of USD 32 billion, a burden that forced Ireland to negotiate an international bailout.