HOME | |

NTMA accuses State Street of €3.2 million alleged fraud

Agency says compensation may be sought

NTMA accuses State Street of €3.2 million alleged fraud
Author image
Jack Quann
13:00 Thursday 22 November 2012

The head of the National Treasury Management Agency (NTMA) is accusing State Street Bank of fraud.

John Corrigan made the claim during an appearance at the Oireachtas Public Accounts Committee (PAC) today.

He says the €3.2 million was improperly taken but has since been recouped.

It related to commission on the sale of €4.7 billion of assets from the National Pension Reserve Fund.

The sale was a requirement under the bailout programme to help in the recapitalistion of the Irish banks.

The NTMA Chief Executive says Gardai and the British Financial Services Authority are investigating.

"Fraudulently - in our view - within State Street there was 0.7% approximately clipped off the sale prices that they got when they went out on to the open market to transition these shares" he said.

Possible compensation

Mr. Corrigan also says the bank is denying it amounts to fraud and that the matter is not over.

"We have accepted the payments which State Street have given us - we have accepted those without prejudice".

"And we have indicated - quite forcibly to State Street when I met them - that the overall relationship, including whatever compensation we might seek, remains unfinished business" he added.

The bank employees over 2,000 people in Ireland having entered the market in 1996. 

It has offices in Dublin, Drogheda, Kilkenny, and Naas and services more than US$600 billion in assets for clients.

The group has US$4.6 trillion in assets under custody and administration and has representation in 11 European countries.

comments powered by Disqus
  • newstalk.com image

    Watch: Lamela’s amazing “rabona” strike

    newstalk.com image

    Brad Pitt's appearance on 'Between Two Ferns' was...

    newstalk.com image

    Gardaí in Donegal continue to question a man over the deaths of...

    newstalk.com image

    Garda Ombudsman Commission investigating fatal crash on the M7

    newstalk.com image

    VINE: Lamela's scored a goal of the season contender

    newstalk.com image

    Newstalk announces deal to supply news services to UTV radio...

    newstalk.com image

    Ireland's five best takeaway restaurants

    newstalk.com image

    Watch: Puppy uses cuteness to redefine Pavlovian conditioning

    newstalk.com image

    What's on Newstalk this bank holiday Monday?

    newstalk.com image

    McDonald slams claim Mairia Cahill was engaged in "sexual...

  • newstalk.com image

    Garda Ombudsman Commission investigating fatal crash on the M7

    newstalk.com image

    Dublin Rape Crisis Centre criticises claims that Maria Cahill was...

    newstalk.com image

    New York doctor is city's first Ebola case

    newstalk.com image

    Murray facing Anderson in Quarter Final

    newstalk.com image

    Newstalk Breakfast: Is it time for a change to Daylight Savings?

    newstalk.com image

    Aaron Paul is even angrier than Bryan Cranston about...

    newstalk.com image

    VIDEO: Permanent TSB expected to fail European stress test

    newstalk.com image

    VIDEO: You must watch two dueling tap and Irish dancing priests in...

    newstalk.com image

    Launchbury signs new deal with Wasps

    newstalk.com image

    Cork City manager Caulfield on league decider