AIB to meet on €760m 'fraud' report

AIB will he handed an expert’s report on a €760m suspected fraud at its main American subsidiary next week.

Specially-convened meetings of the board of the Allied Irish Bank - and the Allfirst company at the centre of the affair - will be presented with a dossier about the loss they have incurred by top United States banker Eugene Ludwig.

Mr Ludwig was appointed to probe events surrounding the activities of Baltimore-based rogue foreign exchange dealer John Rusnak a month ago, and had been expected to hand over his report tomorrow.

But now the directors of the two companies will meet on Tuesday to consider the Ludwig document.

An AIB spokesman confirmed tonight that the ‘‘findings, conclusions and recommendations’’ of the report would be published by the parent company’s board after its deliberations.

He added: ‘‘Details of the actions the AIB board will take as a result of the investigation will also be released at that time.’’

The bank reported the alleged fraud - Mr Rusnak has denied any wrongdoing - at the start of last month, and later admitted it had been going on for five years, rather than the one year it first indicated.

There has been mounting speculation that the affair could force the resignation of senior AIB management figures - as well as executives at Allfirst.