February 16, 2011
By Staff Reporter
The widely anticipated sale was announced last Thursday and follows the discovery this year that a currency trader, John Rusnak, had concealed currency trade losses over a number of years, amounting to $690 million.
AIB earnings have suffered since then. In this deal, AIB, Ireland’s largest bank will get a 22.5 percent stake, or 26.7 million shares, in the enlarged M&T organization, as well as $886 million in cash. AIB will also nominate four directors to the board of the combined entity.
An investigation ordered by Allied Irish Banks after the currency-trading scandal broke concluded that weak internal and risk-management controls permitted the mounting losses to be concealed.
The merger of M&T and Allfirst will create a mid-Atlantic banking franchise with more than 700 branches in six states and the District of Columbia, the companies said.
Rusnak pleaded not guilty to all charges. He is free on bail pending a Feb. 10 court appearance. If found guilty, he would face up to 30 years in prison and a