Trader hid mounting trading losses for at least five years before they were revealed.
Irish Times reports that in the latest instalment in the long-running case, Manhattan-based US district Judge Deborah Batts earlier this week declined to dismiss AIB’s claim, which involves the bank seeking $500m of compensatory damages as well as punitive damages from Citigroup.
Rusnak committed the fraud at AIB’s former subsidiary Allfirst Bank in Baltimore, where he hid mounting trading losses for at least five years before they were revealed in February 2002. The scandal, which was at that stage one of the biggest rogue trading incidents on record, almost brought down Allfirst.
AIB later sold the Baltimore bank to M&T, based in New York.
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