Top US banker Mr Eugene Ludwig is today expected to take over the AIB investigation into the loss of $750 million (€859 million) at US subsidiary Allfirst.
The AIB board announced Mr Ludwig’s appointment yesterday. It also said it would decide on whether a top group executives would get bonus payments for 2001 after the investigation has been done. Annual 2001 bonus payments to top Allfirst staff have been cancelled.
The investigating team has been given until March 9th to find out how a foreign exchange trader at the Allfirst treasury operation accumulated $750 million losses before tax without begin discovered.
Mr Ludwig is the managing partner of Washington DC-based merchant bankers Promontory Financial Group. He was Comptroller of the US Currency between 1993 and 1998 and is a former vice-chairman of Bankers Trust Company and director of the US Federal Deposit Insurance Corporation.
Mr Con O'Sullivan, deputy to group finance and risk director Mr Gary Kennedy, is leading the AIB team. AIB group treasurer Mr Pat Ryan has taken over the running of the Allfirst treasury operation.
About 15 executives from the group audit and treasury operations in Dublin have gone to Baltimore to take part in the investigation.