Citi traders sacked as Allfirst probe continues

Citigroup suspended Richard Marra in New York and Joseph Craven in Singapore in early March for “reasons unrelated to trading activity”, the bank said.

But traders in the global forex market claimed the dismissals were linked to expense accounts used to entertain Rusnak, who dealt heavily with Citigroup during a five-year fraud.

Citigroup said it did not expect to make any further suspensions or dismissals, but could not say whether it was continuing its own investigation into traders’ dealings with Rusnak, or whether it was collaborating with Allfirst parent group Allied Irish Banks’ ongoing investigation.

Although an independent report, commissioned by AIB and carried out by banking specialist Eugene Ludwig, was published on March 14, AIB is continuing the investigation, which will focus on Rusnak’s counterparties at other banks.

“Unusual trades should be fully reviewed to ensure that no impropriety took place and to clarify fully whether other dealers obtained any benefits in their dealings with Rusnak other than full bid-offer spreads and market fees,” the report advised.

Bank of America, another of the banks implicated in Ludwig’s report as having dealt with Rusnak, has said it does not expect to make any suspensions in connection with its own internal enquiry into the affair.

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• Topics
• Regulation
• Foreign exchange