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

    Ireland's five best takeaway restaurants

    newstalk.com image

    Watch comedian Richard Ayoade take a different approach to a TV...

    newstalk.com image

    Shortlist for 2014 Image Businesswoman of the Year awards announced

    newstalk.com image

    Dáil suspended for day after business held up by dispute

    newstalk.com image

    Goodfellas actor sues The Simpsons for $250m, claiming fringe...

    newstalk.com image

    Newstalk Breakfast on Irish Water: The Government have to go for a...

    newstalk.com image

    'Superhero' Gavin Glynn passes away after battle with a...

    newstalk.com image

    This one-minute horror movie is spooking everyone out

    newstalk.com image

    180 new jobs announced for Dublin and Waterford

    newstalk.com image

    VIDEO: Mairia Cahill meets with Taoiseach Enda Kenny to discuss her...

  • newstalk.com image

    The Five Shakers: The top five stories of the day

    newstalk.com image

    BLOG: Off The Ball and Champions League scores

    newstalk.com image

    The Top Five Podcasts of the Day

    newstalk.com image

    Man charged following €270k drugs seizure in Dublin

    newstalk.com image

    What are your favourite TV shows called in other countries?

    newstalk.com image

    VIDEO: Eagle steals golf ball, only to return it on the next hole

    newstalk.com image

    OPINION: What should women under 40 know about breast cancer? Well,...

    newstalk.com image

    Cash and tobacco seized by Revenue in Dublin

    newstalk.com image

    The record-breaking 'Guardians of the Galaxy' soundtrack...

    newstalk.com image

    VIDEO: BASE jumper's handstand launch doesn't go to to plan