Allied Irish Banks to Dismiss Managers

Allied Irish Banks is expected to dismiss senior managers this week at its scandal-hit U.S. unit Allfirst, where rogue trader John Rusnak ran up losses of nearly $700 million, it was reported.

The Business newspaper of London said Allfirst Chairman Frank Bramble as well as the Maryland bank’s chief executive, Susan Keating, would resign. Rusnak’s immediate bosses, Bob Wray and David Cronin, the head of Allfirst’s treasury team, also were expected to be fired. Both men were suspended in February when the losses, totaling $691 million and accumulated over several years, were revealed.

The newspaper said Michael Buckley, Allied Irish chief executive, would not resign.

A report on the trading scandal, led by former U.S. Comptroller of the Currency Eugene Ludwig, was handed to Allied Irish Chairman Loclann Quinn on Saturday, the newspaper said. It will go to the board on Tuesday and a public statement from the bank is expected on Wednesday, the paper said.

An Allied Irish spokesman said the bank had no comment.

The U.S. trader at the center of the foreign exchange dealing scandal has refused to be interviewed by the inquiry into the affair by Allied Irish.

Rusnak is under investigation by the Federal Bureau of Investigation, with which he is said to be cooperating. Through his lawyers, he has denied stealing money and has not been charged with any crime.

The newspaper said Rusnak had acted on legal advice in refusing an interview with Ludwig, the independent head of the inquiry, casting doubt on the validity of the inquiry’s report.

The eagerly awaited report’s findings could influence whether rival Bank of Ireland prepares a bid for Allied Irish.