Top firms finally settle 12 year rogue trading dispute

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The trader got 90 months in prison, but was out years before the banks settled their case.

Citigroup and Allied Irish Banks settled a 12 1/2-year dispute over claims the U.S. bank helped rogue AIB currency trader John Rusnak hide almost $700m.

Bloomberg News reports that AIB had sought $872m in the lawsuit filed in Manhattan federal court.

AIB and Citibank agreed to drop lawsuits against each other, according to a filing with the court Wednesday.

Reuters reports that Rusnak hid trading losses for at least five years before they were revealed in February 2002.

AIB accused Citigroup's Citibank unit, which was Allfirst's prime broker, of furthering the fraud by enabling Rusnak's sham transactions, including disguised cash advances and fake trades.

It said this let Rusnak trade more than Allfirst allowed, while pretending his currency bets were legitimate.

Citigroup countered that the evidence did not come close to suggesting it contributed to Rusnak's losses.

Citigroup and Allied Irish Settle Dispute Over Rogue Trader

Allied Irish, Citigroup settle litigation over rogue trader

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