Allied Irish Banks have welcomed the decision by US prosecutors to indict Mr John Rusnkak who worked for their US subsidiary, Allfirst.
Mr Rusnak, who was a currency trader for the bank in Maryland, is accused of hiding $700 million (€740 million) in trading losses. Yesterday, he was indicted by a US federal grand jury on seven counts of fraud, false entry in bank records, and aiding and abetting.
Mr Rusnak has made an initial appearance before a court in Baltimore, Maryland.
A short statement form AIB said: "AIB Group and Allfirst welcome the Grand Jury’s decision to indict former employee John Rusnak on charges of bank fraud and false entry in bank records. AIB stated at the outset that it believed it was the victim of a complex and sophisticated fraud and these charges endorse that conclusion".
The bank have accused accused Mr Rusnak of fabricating purchase options contracts. He allegedly forged the contracts to give the bank insurance for his losses, which came mostly in Japanese yen.
Mr Rusnak's lawyers have said he did not personally profit from the deception, but AIB claims he received hefty bonuses in reward for what appeared to be profitable deals.
The case prompted AIB to hire Mr Eugene Ludwig, a former US Treasury Department banking regulator, to investigate the bank.
The Ludwig report blamed managers at Allfirst for permitting the alleged fraud to take place, prompting the bank to fire six Allfirst managers.
AIB has agreed with US, Irish and Maryland regulators to conduct reforms in wake of the fraud.
Additional reporting AP