Bank seeks $872m payout from Citigroup over rogue trader

Trading Desk

Allied Irish Banks is seeking $872m from Citigroup as a 12 year-old dispute over claims the bank helped rogue AIB currency trader John Rusnak hide almost $700m in losses nears trial.

Bloomberg News reports that in the lawsuit, filed in 2003, AIB said units of Bank of America and Citigroup joined Rusnak’s scheme in 2000 by opening accounts for him, and that brokers there helped conceal his losses. Bank of America settled with AIB, according to court documents.

AIB is seeking $372m in damages in the coming trial against Citigroup and about $500m “in pre-judgment interest,” according to a November 16 filing in Manhattan federal court. The trial is due to start in January, according to court filings.

To access the complete Bloomberg News article hit the link below:

AIB Seeks $872 Million From Citigroup in Rogue Trader Clash

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