14/03/2002

AIB sacks six executives over trading losses at Allfirst

Irish bank AIB, which has been at the centre of one the biggest banking fiascos since Barings, has sacked six executives at their American subsidiary Allfirst.

The job losses were announced following the publication of US banking expert Eugene Ludwig's 30-day examination of the $691 million trading losses incurred at Allfirst.

AIB blames the alleged fraud at its Allfirst division on the actions of currency trader John Rusnak, who has already been dismissed. The bank has accused him of forging documents in order to conceal trading losses incurred between 1997 and 2001.

Six staff at Allfirst have been fired, including the head of treasury, David Cronin, and Lawrence Smith, John Rusnak's immediate superior. The retirements of both Frank Bramble, head of AIB's US operations and Pat Ryan, AIB's Group Treasurer, were announced in January and will take effect from June. Susan Keating will keep her job as Chief Executive Officer of Allfirst.

Eugene Ludwig's report found that John Rusnak was involved in the falsification of bank records and documents but that nobody inside or outside AIB had any knowledge that fraudulent trading was occurring at Allfirst. The report also found that supervision at Allfirst was weak and failed to monitor Mr Rusnak's trading over an extended period.

Mr Ludwig also found that there was a lack of appreciation at AIB Group level of the risks associated with hedge-fund foreign exchange trading.

Both AIB Chairman, Lochlann Quinn and Chief Executive Michael Buckley, offered their resignations to the board of AIB on Tuesday 12 March, but were asked to stay on, with full approval from the board.

AIB has appointed Eugene Sheehy - formerly managing director AIB Republic of Ireland - as CEO of AIB USA and Executive Chairman Designate of Allfirst. AIB has also said the positions of Chief Risk Officer and Head of Group Internal Audit will be filled by external appointees. All proprietary trading at Allfirst and AIB's Polish divisions will cease.

The FBI is conducting a criminal investigation into the losses at Allfirst.

(AMcE)

Related Northern Ireland News Stories
Click here for the latest headlines.

07 February 2018
Amost 150 Job Losses At Engineering Firm In Co Antrim
An engineering firm based in Co Antrim has gone into administration with the loss of almost 150 jobs. William Industrial Services (WIS) has collapsed into administration.
13 November 2017
Man Shot In Paramilitary-Style Attack In L'Derry
A man has been shot in the leg in a paramilitary-style attack in Co L'Derry. The 44-year-old victim was walking in the Madams Bank Road area just after 8pm on Sunday, 12 November. A gang of men approached him and forced him into a tunnel and shot him. They made off along Madams Bank Road in the direction of Carranbane Walk.
18 January 2018
Investigation Launched Following Burglary In Co Antrim
An investigation has launched following a burglary at a house in Co Antrim. The break-in occurred in the Massereene Gardens area on Tuesday, 09 January. A number of items including cash, bank cards, jewellery, and electronic items were stolen.
15 November 2017
Ulster Bank To Close 11 NI Branches
Ulster Bank has confirmed it plans to close 11 branches next year in Northern Ireland. The bank confirmed it will be seeking 40 voluntary redundancies as a result of the closures. The branches to close are: Ballyclare, Dromore, Moira, Draperstown, Dungiven, Portrush, Killyleagh, Rathfriland, Castlederg, Irvinestown and Stewartstown.
26 September 2017
KFC To Create 100 New Jobs In NI
KFC has announced it is to create 100 new jobs in Northern Ireland. NI man Michael Herbert confirmed The Herbert Group has acquired 27 new KFC stores in Britain and Ireland. The expansion follows the company agreeing a major refinancing deal, with Danske Bank providing £27million of the new funding.
06 June 2017
Police Appeal to Help Find Stolen Star Trek Cards
Police have issued an appeal to help trace 3,800 Star Trek trading cards of "quite high value". The cards were stolen from a property in L'Derry on Monday, 05 June. On a Facebook post a PSNI spokesperson said: "A burglary has occurred in the city and approx 3800 Star Trek trading cards were stolen and these have quite a high value.
19 May 2017
Plans To Extend Sunday Trading Hours Rejected
Plans to extend Sunday trading hours in Northern Ireland have been rejected following a vote at Belfast City Council. The council voted 12-3 opposing the the move. The DUP, Sinn Fein and the SDLP were all against the proposals.
20 October 2016
Council To Discuss Plans To Extend Sunday Trading Hours
Belfast City Council is to discuss a proposal to change Sunday opening hours for shops which would see specific areas of the city designated as a 'holiday resort'. The plans would see Sunday trading hours extended for large shops for up to 18 Sundays, other than Easter Sunday, between 01 March and 30 September each year.
23 May 2018
DUP Accuses BoE Governor Of 'Extremely Misleading' Information
The DUP have criticised the Governor of the Bank of England (BoE) over so-called "extremely misleading" comments about the effects of Brexit.
13 April 2018
Ulster Rugby Sponsor 'Concerned' Over Conduct In Rape Trial
A key Ulster Rugby sponsor has raised concerns over the conduct of players involved in the recent Belfast rape trial, which saw players, Paddy Jackson and Stuart Olding, both acquitted of all charges.
14 March 2018
Danske Bank Warns Customers Of Fraudulent Text Messages
Danske Bank customers in Northern Ireland have been urged to report incidents of SMS text messages asking the customer to call a 0330 number.
16 December 2011
Theatre 'Waxing Lyrical' Over Audiences
In the six months since opening upwards of 40,000 theatregoers have enjoyed the newly named Northern Bank Stage of Belfast's Lyric Theatre, it was revealed on Thursday. A string of hard-hitting plays and star performances have contributed to the success of the main auditorium and focal point of the new £18.1m replacement Lyric Theatre.
09 February 2018
Rise In NI House Prices
House prices in Northern Ireland have increased, however less properties are going on the market, according to a report. The survey, by the Royal l Institution of Chartered Surveyors (RICS) and Ulster Bank revealed the market in NI is considerably more positive than in some other regions in the UK.
14 December 2017
Elderly Couple Scammed Out Of £15,000
An elderly couple have been scammed out of £15,000 by a people posing to be from BT, according to the PSNI. The scammer contacted the couple by phone and said that they needed access to their computer to fix a fault. They talked the victim through a process which allowed them remote access to their computer.
19 May 2017
Shop Workers Protest Over Extended Trading Hours On Sundays
A number of shop workers have taken part in a protest outside Belfast City Hall to oppose extending trading hours on Sundays. Usdaw the union led the demonstration after a member survey came out 6:1 against.