AIB Seeks $872 Million From Citigroup in Rogue Trader Clash
- Irish lender says Citigroup helped John Rusnak hide losses
- Rusnak pleaded guilty to defrauding AIB subsidiary in 2002
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Allied Irish Banks Plc is seeking $872 million from Citigroup Inc. as a 12 year-old dispute over claims the U.S. bank helped rogue AIB currency trader John Rusnak hide almost $700 million in losses nears trial.
In the lawsuit, filed in 2003, AIB said units of Bank of America Corp. and Citigroup joined Rusnak’s scheme in 2000 by opening accounts for him, and that brokers there helped conceal his losses. Bank of America settled with AIB, according to court documents.