US bank accused of defrauding taxpayers

The head of the National Treasury Management Agency has accused US investment bank State Street of defrauding Irish taxpayers of €3.2m when it divested a €4.7bn fund.

In 2011, the NTMA commissioned State Street Bank Europe in the UK to liquidate a €4.7bn fund. The proceeds were to be invested in Irish pillar banks. The NTMA agreed to pay a one-off fee of €698,000.

At the end of last year, a staff member of the National Pension Reserve Fund, which is part of the NTMA, contacted State Street following media reports there were problems at the bank.