AIB chiefs hold inquest on $750m fraud

Directors at Ireland’s biggest bank, AIB, were meeting in special session today to assess worldwide reaction to yesterday’s shock disclosure of a $750m (€866m) fraud loss at an American subsidiary.

The boardroom exchanges were going ahead against a background of fears that the man at the centre of the affair, John Rusnak, a foreign affairs trader at the AIB-owned Allfirst Finance Inc in Baltimore, Maryland, may not have acted alone in allegedly formulating bogus trade deals over a 12-month period that led to the massive deficit.