Did Citi and B of A Help Hide Rogue Trader’s Losses

When rogue currency trader John Rusnak was finally exposed for having buried $691 million of losses between 1997 and 2002, his employer, Allied Irish Bank, started looking for places to put the blame. Allied sued the prime brokers involved--Bank of America and Citigroup--for having aided and abetted Rusnak’s deceptive book-keeping. Yesterday, Manhattan Federal Judge Deborah Batts rejected a bid by the two big banks to dismiss the lawsuit, opening up the possibility that big punitive damages could lie in the future.
Bid ti End Rogue Trader Case Fails [Reuters UK]

Comments:

<< Back to main