BAWAG controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2007
Cuban customer account closures
The bank terminated the accounts of approximately 200 Cuban citizens, citing the new owner's refusal to maintain trade relations with Cubans and compliance with U.S. sanctions concerns. The Austrian government applied pressure and legal proceedings were initiated before Cerberus obtained an exemption from the U.S. government.
2005
The BAWAG affair
Investigations following Refco's bankruptcy exposed BAWAG's large loans to Refco chief executive Phillip Bennett and losses from risky derivative transactions held through off-balance-sheet vehicles. The episode threatened the bank's solvency, led to government support and resulted in criminal convictions of several executives and associated financial figures.