BAWAG PSK controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2006
Refco creditor litigation and settlement
Refco creditors sued BAWAG for more than $1.3 billion, alleging that the bank had helped conceal fraudulent transactions and had not fully disclosed its Refco exposure. A comprehensive settlement was confirmed by a New York bankruptcy court in September 2006.
2005
Refco lending scandal
BAWAG approved a €425 million loan to Refco chief executive Phillip R. Bennett shortly before Refco’s undisclosed financial problems became public. Bennett had used borrowed funds in an attempt to conceal bad debts. Refco subsequently entered bankruptcy, prompting investigations by Austrian authorities and litigation by creditors.
2005
BAWAG and the Refco affair
BAWAG's financial relationship with Refco became a major scandal after Refco collapsed in 2005. The resulting losses, investigations and legal proceedings contributed to the bank's ownership change and restructuring. The episode concerns the former BAWAG institution and is a central historical event behind the later BAWAG P.S.K. group's reorganisation.