Md.'s largest bank, Allfirst Financial, loses $750 million

Bramble declined to discuss the future of his position and that of Keating's. He said they were working aggressively to "bring this investigation to a conclusion."

But private banker Stuart Greenberg said, "They're trying to deflect what happened. At the end of the day, this is an indictment of management.

"This is mind-numbing -- the depth of mismanagement. Somewhere down the line, you have to take responsibility," he said. "This is fraud on a grand scale."

But over and over, Bramble emphasized "that loss has not significantly negatively impacted our capital ratios."

The bank noted AIB Group's tier one capital ratio dropped from 7.2 percent to 6.4 percent with total capital falling from 10.8 percent to 9.9 percent. The Allfirst tier one capital ratio dropped from 10.5 percent to 7.2 percent with total capital declining from 13.3 percent to 10.0 percent.

"These capital ratios remain strong by international financial standards," the bank said in a statement.

But Greenberg noted the bank was "lucky" to have that much cash on hand to cover the loss.

Home sweet home

The news of the scandal brought reporters into Baltimore from all over the world. Some descended on the quiet upper middle class of Mount Washington where Rusnak and his family have lived on Smith Avenue since they purchased their Victorian home in 1994.

Camera crews camped out around the home waiting apparently waiting for Rusnak or his wife and children to return home. A station wagon was parked in the driveway.

Residents in the city neighborhood were stopped and asked for any tidbit of information they could give about the Rusnaks.

One neighbor, who requested anonymity, said the family brought the children trick or treating every Halloween -- except for the last one. He figure the tragic events of Sept. 11 kept the children away this year.

The children, apparently the center of the family's attention, were entertained by pony rides of their recent birthdays.

Even Keating, who is facing an uphill battle to keep her job because of Rusnak, had good things to say about the man.

She called him a good family man and a member of his church's board.

The worst anyone called him was "a rogue trader."

Copyright 2002 Dolan Media Newswires
Provided by ProQuest Information and Learning Company. All rights Reserved.