AIB Out of Control

AIB confirmed yesterday that lax controls may have been partially to blame for the $750m (£500m) fraud in its US operation Allfirst.

It is believed that the lack of adequate risk management systems and back office controls may have allowed the fraud to continue for up to a year.

Royal Bank of Scotland continue to watch events and are rumoured to be considering a bid for the troubled Irish banking group.

In the meantime, the FBI have now interviewed John Rusnak, the FX trader believed to be at the centre of the fraud. Rusnak denies theft. Officials at the FBI continue to investigate.