AIB rogue trader jailed over scam


ALLIED Irish Bank's rogue US trader John Rusnak was sentenced to seven and a half years in prison, followed by five years' probation for his part in the scam which cost the bank £443m. Rusnak pleaded guilty to one count of bank fraud and agreed to help investigators looking to see whether others were involved.

If he had been found guilty following a trial, he would have risked a maximum sentence of 30 years in prison and $1m (£640,000) in fines.

The swift US justice contrasts dramatically with the snail's pace usually seen in business scandals over here.

The scam at AIB's US subsidiary Allfirst only came to light in February. Rusnak ran up the losses over five years speculating on the yen.

Prosecutors say he did not profit directly, but earned £417,000 bonuses during that time. Last month AIB sold Allfirst to US regional bank M&T for £2bn.

AIB rogue trader jailed over scam

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