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Six sacked for $700m bank loss.

SIX executives yesterday paid the price for a $700million bungle when they were sacked by Allied Irish Bank.

The firm let a fortune slip slip through its fingers at a US subsidiary because poor internal control procedures failed to spot "tonnes" of unusual trades, the group said yesterday.

AIB group chairman Lochlann Quinn said: "Let's face it, we missed it," as six executives were sacked for failing to notice the activities of Baltimore trader John Rusnak.

Rusnak disguised his own losses in a "carefully planned" and "meticulously implemented" scheme.

More stringent checks and control procedures are now being implemented at the bank while officials continue to investigate whether Rusnak colluded with others outside the institution in covering up his massive losses.

Those whose heads will roll will be given no compensation or payoffs.
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Publication:Daily Record (Glasgow, Scotland)
Geographic Code:4EUIR
Date:Mar 15, 2002
Words:133
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