M&T to buy AIB’s Allfirst division

AIB is reported to be near agreement to sell its troubled Allfirst subsidiary in the US in a deal worth $3bn (€3.06bn).

The merger, expected to be announced today, would transfer complete ownership of Allfirst to US banking house M&T and give AIB a 22% stake in return.

AIB was left reeling in February of this year with revelations that Allfirst trader John Rusnak notched up losses of nearly $700m (€715m).

Rusnak is set to face charges of fraud in US Federal Court next February.