AIB appoints Ludwig as adviser on risk control

AIB has turned to the man who investigated the activities of rogue trader John Rusnak to advise on the bank’s risk control and compliance.

Eugene Ludwig, who runs the Promontory Financial Group, carried out the report two years ago into John Rusnak’s $691 million foreign exchange losses.

He will become an external adviser to the AIB board on risk, control, compliance and governance issues arising from recent events.

Mr Ludwig is highly respected in financial circles and was the US currency comptroller under former president Bill Clinton.

Mr Ludwig, 56, said yesterday that AIB was a fundamentally “sound banking organisation” and had learned much since the Rusnak affair. He said the board has recognised the need for improvement in the bank’s culture and had already made positive steps forward.

However, in an interview with a Sunday newspaper last month, Mr Ludwig said that of the 100 banks he has investigated over his career, the allegations that former AIB bosses were engaged in tax evasion and held offshore funds was “out of the ordinary”.

His two-month investigation into the Rusnak debacle cost the bank around $8m. It was not revealed how much he will receive in payment for his consulting role.