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AIB May Demand Return Of Bonus

Allied Irish Banks (AIB) is coming under increasing pressure to ask for the return of the £230,000 bonus paid to Susan Keating last year, which related to her performance in 2000. She is chief executive of AIB's US subsidiary Allfirst, the unit that was forced to write off $691m earlier this year due to the John Rusnak FX scandal. Rusnak was able to hide his losses from the bank for several years.

Ms Keating remained in position after the publication last month of the independent report into the affair conducted by Eugene Ludwig. Many thought that she would resign at that time. Six other officials did leave the bank.

AIB has already confirmed that it will not pay bonuses to its senior executives for 2001 because of the losses at Allfirst. Questions are now expected to be asked about Ms Keating's 2000 bonus by shareholders at next month's annual meeting. The bank may have to consider asking for it back.

Ms Keating's position is thought to be increasingly untenable. She is believed to be on probation to turn Allfirst around and many feel that her days at the bank are numbered.

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