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

    #OpenToAll: Moncrieff and McKean lip sync about ‘love, love,...

    newstalk.com image

    VIDEO: Thousands of water charge protesters take to streets around...

    newstalk.com image

    Foreign affairs minister condemns murder of Kenji Goto

    newstalk.com image

    Former economist and journalist Colm Rapple has died

    newstalk.com image

    Look familiar? Photo of Barack Obama's Irish relatives uncovered

    newstalk.com image

    Latest round of peace talks in Ukraine said to have collapsed

    newstalk.com image

    Investigation after reports former president of Panama landed in...

    newstalk.com image

    Fresh calls for Ceann Comhairle to withdraw claims that opposition...

    newstalk.com image

    Whitney Houston's daughter 'doing fine' after being...

    newstalk.com image

    The five shakers: Saturday's top stories

  • newstalk.com image

    Sunday GAA round-up: Cork and Mayo enjoy bright starts for their...

    newstalk.com image

    Today's Live Scores

    newstalk.com image

    Saturday GAA round-up: Allianz League kicks off with wins for...

    newstalk.com image

    Saturday Premier League round-up: Chelsea maintain gap at the top...

    newstalk.com image

    PREVIEW: Djokovic has edge in virtual battle with Murray

    newstalk.com image

    Wolfhounds tamed by England

    newstalk.com image

    More teams should concentrate on 'winnable' league - McEntee

    newstalk.com image

    LIVE BLOG: Ireland Wolfhounds v England Saxons

    newstalk.com image

    Harrington and Tiger's Phoenix chances going up in flames

    newstalk.com image

    Grealish linked with Forest loan