Rogue trader Rusnak jailed

Rogue trader John Rusnak, whose $427m losses almost bankrupted an Irish-owned US bank, was today jailed for seven-and-a-half years.

He was also ordered to pay $600 a month compensation for five years after his release.

Rusnak, who pleaded guilty to hiding $427m in trading losses at the bank, told Baltimore Judge William Nickerson he was "very sorry" and wanted to accept full responsibility for covering up the losses.

Rusnak also said he wanted to try to make restitution, saying he hoped that would lead to "some kind of redemption".

The prison sentence was the same as called for in a plea bargain agreement with prosecutors.

Prosecutors said Rusnak fabricated trades to cover trading losses and maintain his salary and bonuses.

The losses were discovered by the bank last year.

Rusnak was indicted last June in the biggest bank fraud case since Nick Leeson lost more than $600m on futures trades and caused the 1995 collapse of England's Barings Bank.

Rusnak ran up the losses at Allfirst Financial over five years, mostly from trading Japanese yen.

While trying to recoup those losses, prosecutors argued, he dug himself a deeper hole by taking ever-larger risks.

Prosecutors said he racked up bonuses of more than $400,000 by making it look as if the bank was making money instead of losing vast sums between 1997 and 2001.