AIB chief's job 'safe' despite trading losses

Group chief executive of Allied Irish Banks Michael Buckley is safe in his job, despite the loss of $691m (€789m) by a trader at a US subsidiary, it was reported today.

The move came as the boards of AIB and its subsidiary Allfirst continued to meet in Dublin, after receiving a report into the affair by a top banker.

Officials met for 14 hours yesterday to consider the report by former currency controller Eugene Ludwig, which recommended where the blame lay for the affair and how to avoid such a catastrophe in the future.

Details of the report are set to be made public within the coming days but there are reports today that group chief executive Michael Buckley had not been implicated in any way in the affair, in which Baltimore trader John Rusnak ran up the massive losses over a five-year period.

One bank source is quoted referring to Mr Buckley: ‘‘There is nothing there that would make him fearful for his job.’’

It was also said that Mr Ludwig was highly critical of controls at the bank. Checks and balances were said not to be managed properly.

Mr Ludwig has recommended significant internal changes to counter the possibility of such massive losses crippling the financial institution in the future, it was reported.

The board also has to decide whether heads should roll. In the firing line is AllFirst head of treasury David Cronin, chief executive Susan Keating and the chairman of the US operation, Frank Bramble.

Yesterday the Labour Party said AIB officials should be called before the Dáil to explain how the losses were made.