Following the indictment of former Allfirst currency dealer Mr John Rusnak on charges of bank fraud, his lawyer, Mr David Irwin, is expected to enter a plea bargain on his behalf in the coming weeks, which means the case will not go to trial.
"I think the eventual resolution will be a plea situation as opposed to a trial," Mr Irwin said.
He would not comment on the state of the negotiations with the district attorney other than to say no deal had been reached.
Mr Rusnak was indicted on Wednesday on seven counts of bank fraud, each carrying a maximum sentence of 30 years in jail and a $1 million (€1.1 million) fine. The charges relate to his losses of $691 million at Allfirst.
Mr Rusnak did not enter a plea when he appeared in court before US Magistrate Judge Beth Gesner. He was released on his own recognisance. He has surrendered his passport and is confined to travelling in Maryland, Pennsylvania and New Jersey.
Permission from a court supervisor is required to go anywhere else, Mr Irwin said, adding that Mr Rusnak "continues to be truly remorseful for his role in these events and we look forward to the eventual resolution of this".
If a deal is worked out, the US attorney in Baltimore will submit a document to Mr Rusnak for his signature outlining the charges he is pleading to and the sentencing guidelines.
Mr Rusnak has co-operated with the FBI and did not convert any of the trading losses to his own use, factors that will work in his favour.
The former trader was charged with using fictitious documents and prime brokerage accounts to cover up trading losses so that he could continue to receive salary and bonuses amounting to $850,000 over five years.
His case has been assigned to Chief US District Judge Frederic Smalkin and is being prosecuted by Mr Stephen Schenning, who served as US attorney in 2001.
A successful plea bargain would mean that Allfirst would be spared an embarrassing public rehashing of the case in a Baltimore court.
Mr Carnell Dawkins, manager of a mailbox business in Manhattan where, according to the indictment, Mr Rusnak opened an account under the alias of David Russell to produce a counterfeit trade confirmation, said that the account was rarely used and was closed after three months.
Six Allfirst officials were fired in the wake of the trading scandal. The bank has not accused any of them of wrongdoing.
The investigation into the fraud is continuing, with emphasis on the possibility of involvement by counterparties at other banks. If confirmed this would indicate that Allfirst was the victim of a complex conspiracy rather than just weak controls.
Mr Rusnak was wooed by traders at these banks with Superbowl tickets, trips to holiday destinations and other inducements.
