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Business briefs: AIB expects report on trader’s losses

February 16, 2011

By Staff Reporter

By Stephen McKinley

The report into how John Rusnak managed to lose $780 million for Allied Irish Bank is expected to be finished this Saturday.

Eugene Ludwig, the investigator into the massive losses at AIB’s Baltimore subsidiary, Allfirst, is expected to shed light on how the bank remained in the dark about the losses of the currency trader, which, it has been revealed, started as long as five years ago.

Rusnak’s losses topped $211 million in 2000, and he started to find funds from other sources in order to conceal the losses. Total losses when the scandal broke a few weeks ago were approximately $780 million.

According to investigators, he struck deals with four banks, generating more than $200 million. The New York Times noted this week that these were options trades, but amounted to loans.

The investigation will focus on how AIB’s Baltimore subsidiary, Allfirst, failed to notice that something was amiss through its internal monitoring system.

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Ryanair red-faced?

Ryanair appeared embarrassed this week with the revelation that a woman who had been selected as the airline’s millionth passenger back in 1988, had filed a suit saying that Ryanair had breached its original contract with her.

Ryanair’s CEO, Michael O’Leary, spoke to Jane O’Keefe on the phone and brusquely dismissed her with the words, “Who do you think you are, ringing up demanding flights?” the High Court heard this week.

O’Keefe is suing Ryanair Holdings for damages, negligence, misrepresentation and loss of expectation.

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