ALLIED IRISH BANKS

Laurent L Jacque

Chapter 9 in Global Derivative Debacles:From Theory to Malpractice, 2015, pp 125-141 from World Scientific Publishing Co. Pte. Ltd.

Abstract: On February 6, 2002, Allied Irish Banks (AIB) disclosed that its US subsidiary Allfirst Financial Inc. had incurred a staggering loss of $691 million. The loss was traced to foreign exchange trading activities conducted by its currency trader John Rusnak. It was later revealed that the currency losses started as early 1997 and had been fraudulently concealed by the rogue trader from the senior management of the bank. The loss was significant enough to cut Allied Irish Banks' 2001 consolidated earnings by 60% and deplete the bank's capital by 10%…

Keywords: Derivatives; Debacles; Options; Swaps; Futures; Forwards; Financial Engineering; Market Manipulation; Rogue Traders; Speculation; London Whale (search for similar items in EconPapers)
Date: 2015
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