AIB appoints risk officer in wake of Rusnak fraud

AIB Bank, rocked by a major fraud case this year, said yesterday it had appointed Shom Bhattacharya as chief risk officer in a move designed to prevent a repeat of the scandal.

The position has been created after the scandal of rogue trader John Rusnak, who lost $692 million at the bank's US subsidiary Allfirst through fraudulent foreign currency dealing.

Ironically, Rusnak and Mr Bhattacharya share a former employer. They both worked for Chemical Bank, a predecessor of JP Morgan Chase.