E.U. Probes Austrian Aid To BAWAG

Law360, New York (November 22, 2006, 12:00 AM EST) -- Confirming speculation that it would investigate the bailout of Austrian bank BAWAG PSK, the European Commission announced Wednesday that it has opened a formal probe into whether the Austrian bank violated European Union rules.

"Companies in difficulty may benefit from state support under strict conditions…It is the Commission's duty to verify that these conditions are met, in order to ensure that competition is not distorted," Competition Commissioner Neelie Kroes said.

BAWAG is the fifth-largest bank in Austria. After a string of scandals hit the bank in...
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