Allfirst Financial Base Case

By Sean Gallagher  |  Posted 2002-03-12 Print this article Print

Allfirst Financial ran its currency trading desk without much of the software that was standard at its corporate parent, Allied Irish Banks. Was that a $690 million mistake?

Allfirst Financial Base Case

Headquarters: 25 South Charles St., Baltimore, MD 21201

Phone Number: (410) 244-4000

Business: Provides comprehensive corporate, commercial, correspondent and retail banking services, personal and corporate trust services in Mid-Atlantic states

Chief Information Officer: William G. Fitting, Senior Vice President, Operations and Processing Services

Financials, nine months 2001: $1.1 billion in revenue, $149.4 million in net income, net profit margin 14.1%

Challenge: To maintain and increase profitability in a competitive regional financial services marketplace

Baseline Goals:

  • Investigate loss of $691 million from unauthorized currency trading
  • Develop systems to prevent recurrence
  • Evaluate whether to resume ongoing currency trading, which generated as much as $10.9 million of annual profit

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    Sean Gallagher is editor of Ziff Davis Internet's enterprise verticals group. Previously, Gallagher was technology editor for Baseline, before joining Ziff Davis, he was editorial director of Fawcette Technical Publications' enterprise developer publications group, and the Labs managing editor of CMP's InformationWeek. A former naval officer and former systems integrator, Gallagher lives and works in Baltimore, Maryland.

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