Susan Keating, the chief executive of Allied Irish Banks' fraud-hit US subsidiary, will leave her job within six months, UK and Irish newspapers have reported.

The boss of Baltimore-based Allfirst had survived an inquiry by its parent company that resulted in six employees being sacked and the announcement that chairman Frank Bramble was retiring early.

But AIB, fighting to maintain its credibility and independence in the wake of a $691m (�485m) currency trading scandal at Allfirst, has decided that Ms Keating must go, the reports said.

"She got a stay of execution, not a reprieve," the Sunday Times quoted a senior AIB source as saying.

"She could not be pushed immediately but will be gone soon."

The Independent on Sunday and the Irish Sunday Tribune also reported an imminent departure for Ms Keating.

An AIB official said reports Ms Keating was set to go were "complete speculation".

Bare minimum

The internal inquiry identified failures of supervision at Allfirst but did not criticise Ms Keating personally - something that failed to mollify some investors.

One criticised AIB for doing only the "absolute bare minimum" to calm investor unease while several called for Ms Keating to take responsibility.

The Sunday Times said AIB had not wanted to ditch Ms Keating immediately following the inquiry for fear of damaging its US business.

Instead, it had installed senior executive Eugene Sheehy at Allfirst as executive chairman. He would assume control from Ms Keating and ensure a measure of continuity in management while she was eased out, newspapers said.

Moved to Dublin

Following the investigation, AIB said it would strengthen controls across the group and restructure to create a more integrated, streamlined operation.

The bank is also to combine its risk and finance departments, close down Allfirst's treasury operations in the US and move them to Dublin, and appoint a risk management officer for Allfirst.

AIB has blamed the $691m hole in Allfirst's currency trading account on the actions of currency trader John Rusnak.

The bank has accused him of forging documents to hide trading losses incurred between 1997 and 2001.