Allied Irish Banks - The Currency Derivatives Fiasco
| Case Code: FINC032 Case Length: 11 Pages Period: 1997 - 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.500 Organization: Allied Irish Banks Industry: Banking Countries: Ireland, US Themes: Risk Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case discusses how John Rusnak (Rusnak), a trader at Allfirst Financial Inc. (Allfirst), the US subsidiary of Ireland's leading bank - Allied Irish Banks (AIB), lost $750 mn in foreign exchange trading operations.
It describes in detail how the fraudulent trading activities and manipulation of records by Rusnak resulted in major losses.
The case brings out the complete sequence of events and also highlights the reasons for the loss, including inadequate supervision, control system deficiency and failure to review policy and procedures.
Issues
- Risk Management in Banks, Value at Risk (VAR) Model
Contents
Keywords
Allied Irish Banks, Currency Derivatives, Corporate Disasters, Value at Risk (VAR) Model, Management Controls, Risk Management in Banks, Asset and Liability Management, Ludwig Report, Arbitrage, Currency Options, Currency Forwards
Buy this case study (Please select any one of the payment options)
| Price: Rs.500 |
Price: Rs.500 | PayPal (11 USD) |
