AIB sues two US banks over Rusnak fraud

Allied Irish Bank is to sue two other banks which it believes were involved in the fraud operation that led to their US bank loosing more than half a billion dollars last year.

Allied Irish Bank is to sue two other banks which it believes were involved in the fraud operation that led to their US bank losing more than half a billion dollars last year.

Allied Irish Bank is taking a case against the banks saying they were involved in the rogue trading scheme.

John Rusnak, a foreign exchange trader at AIB's American Allfirst was discovered to have hid more than $690m (€585m) with a forged paper trail.

Rusnak is currently serving a seven and a half-year prison term after he admitted the four year long fraud.

AIB is now seeking $500m (€424m) dollars from Citibank and Bank of America which it now says were assisting Rusnak.