AIB reshuffles as investigation continues

Allied Irish Banks PLC officials say they will centralise their management and treasury activities throughout the company.

That will include operations at US subsidiary Allfirst where an American currency trader allegedly ran up €870m in losses.

Interim Allfirst Treasurer Pat Ryan will now report directly to the parent company.

His predecessor, one of four Allfirst employees suspended pending an internal investigation's outcome, had reported to CEO Susan Keating in Baltimore.

The bank has been criticised in the wake of allegations that John Rusnak, a currency trader with Allfirst, was responsible for the losses and that no internal alarms were triggered.

FBI spokesman Peter Gulotta Jr says that Rusnak, 37, has not been charged with a crime.

Mr Gulotta added that a bank fraud and embezzlement investigation is continuing, and that his department is working in conjunction with federal prosecutors.

Virginia Evans, a spokeswoman for the US Attorney's office, would not comment on the probe, but acknowledged that it is ongoing.

Gulotta said despite the vast sum of money involved, his department is treating this case no differently than lower-profile ones.

"It's like every other white-collar investigation," he said. "The only difference is that the amount of money is astronomical."