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Austrian trade union federation formally approves sale of troubled BAWAG bank

Austrian trade union federation formally approves sale of troubled BAWAG bank

Austria's trade union federation has formally approved the sale of BAWAG, the troubled bank linked to last year's collapse of U.S. commodities brokerage Refco Inc., officials said Saturday.
The OeGB federation, which owns BAWAG, late Friday signed off on its sale for euro3.2 billion (US$4.2 billion) to a consortium headed by Cerberus Capital Management, a private investment firm headquartered in New York, OeGB officials said.
Their approval had been the final obstacle to the deal.
BAWAG, Austria's fifth-largest bank, is formally known as Bank Fuer Arbeit und Wirtschaft AG. It lost more than a billion dollars in soured currency speculation deals in the Caribbean and has been under investigation for loaning former Refco CEO Phillip Bennett several hundred million dollars just before the brokerage filed for bankruptcy protection last year.
BAWAG agreed in June to pay at least euro530 million (US$675 million) to avoid prosecution and to settle bankruptcy claims after admitting its role in Refco's collapse.
In October, the Vienna public prosecutor's office filed charges against nine people connected to BAWAG, including Helmut Elsner and Johann Zwettler, both former heads of the bank, as well as investment banker Wolfgang Floettl and Robert Reiter, a former auditor.


Updated : 2021-04-17 21:38 GMT+08:00