AIB's rogue trader, Mr John Rusnak, cost the bank a further $14.3 million, in fees it paid to Mr Eugene Ludwig, who investigated the fraud, and to lawyers, public relations and other consultants.
The trader, who worked at Allfirst's small treasury unit in Baltimore, lost $691 million of the bank's money over a five year period through bad bets on the world's currency markets. Mr Rusnak has been charged with fraud and is awaiting trial in the US.
According to documents filed with the US Securities and Exchange Commission yesterday, the costs associated with investigating and handling the fallout from the fraud stood at $10 million at the end of March. A further $4.3 million was spent on advertising and public relations as part of an "accelerated marketing campaign" at AIB's US subsidiary.
According to the documents, AIB spent $8.3 million on the special investigation undertaken by former US currency comptroller, Mr Ludwig together with legal fees, consulting fees associated with a review of the bank's risk management processes, and marketing costs related to "restoring Allfirst's corporate image".
A further $1.7 million was spent on advertising and on public relations consultants who advised on how to handle the fraud details in the international media.
The bank worked with three public relations firms during the crisis which unfolded on February 6th last. In the Republic, the bank was advised by Mr Jim Milton, a director of Murray Consultants. The bulk of the $8.3 million is understood to have been paid to Mr Ludwig and a US firm of lawyers who worked on the investigation into Mr Rusnak's activities.