Allfirst's Rusnak Manipulated Reuters Data

SPECIAL REPORT

LONDON--Allfirst Financial, the bank that lost $691 million through trader John Rusnak's fraudulent activities, did not use daily forex rates from an independent source for back-office verification, it was revealed in a report published last Thursday.

Instead, Allfirst, the Baltimore-based subsidiary of Allied Irish Banks, verified Rusnak's daily trading positions with forex rates supplied by Rusnak himself. Rusnak manipulated them to distort the profitability of his trades and to make it app

To continue reading...