Citibank warned Allied Irish Banks about possible trading irregularities two years ago but AIB failed to look fully into the matter, according to the independent report into fraud at Allfirst, AIB's US subsidiary.

Citibank, one of Allfirst's main foreign exchange trading partners, made an inquiry into the size of the bank's trading exposure as a $1bn (€1.1bn) trade settlement bill loomed in March 2000. Citibank asked Pat Ryan, AIB's treasurer, whether Allfirst could cover the transactions.