{"id":5879,"date":"2015-11-30T00:00:00","date_gmt":"2015-11-30T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/11\/citigroup_could_pay_872m_in_se"},"modified":"2022-05-17T13:46:58","modified_gmt":"2022-05-17T18:46:58","slug":"citigroup-could-pay-872m-in-se","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/citigroup-could-pay-872m-in-se\/","title":{"rendered":"Citigroup Could Pay $872M in Securities Lawsuit by Allied Irish Banks"},"content":{"rendered":"

Twelve years after Allied Irish Banks Plc (AIB) filed a securities lawsuit against Citigroup (C) <\/a>accusing the bank of helping a rogue trader conceal about $691 million in losses, the case is slated to go to trial next month. AIB reportedly wants $872M from the New York-based bank\u2014 $372M in damages and about $500M in pre-judgment interest.<\/p>\n

It was in 2003 that AIB sued Citigroup subsidiary Citibank and Bank of America Corp. (BAC)<\/a>. AIB contends that the defendants were linked to a scam that led to significant losses for its former unit, Allfirst Financial. Bank of America has already settled the allegations against it.<\/p>\n

In 2002, trader John Rusnak\u2019s losses were discovered and he pleaded guilty to banking fraud. Rusnak admitted to concealing $691M in trading losses while employed at Allfirst. The losses were sustained over five years and came from primarily trading the Japanese yen and for taking even bigger risks as he sought to get back some of these losses.<\/p>\n

While Rusnak did not make a direct profit from the losses, he made over $650K in bonuses when he made it appear as if Allfirst was making money. He was released from prison in 2009.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Twelve years after Allied Irish Banks Plc (AIB) filed a securities lawsuit against Citigroup (C) accusing the bank of helping a rogue trader conceal about $691 million in losses, the case is slated to go to trial next month. AIB reportedly wants $872M from the New York-based bank\u2014 $372M in damages and about $500M in […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3820,3752],"tags":[],"class_list":["post-5879","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-citigroup","category-financial-firms"],"yoast_head":"\nCitigroup Could Pay $872M in Securities Lawsuit by Allied Irish Banks — Investor Lawyers Blog — November 30, 2015<\/title>\n<meta name=\"description\" content=\"Twelve years after Allied Irish Banks Plc (AIB) filed a securities lawsuit against Citigroup (C) accusing the bank of helping a rogue trader conceal about — November 30, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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