E.C. Plans To Review Austria’s Bawag Bailout Plan

Law360, New York (May 5, 2006, 12:00 AM EDT) -- Just days after the Austrian government infused national bank Bawag PSK Group with $1.13 billion to cover costly litigation settlements in the United States, European competition regulators have asked Austria to share details of the bailout transaction.

The European Commission is eyeing the deal that emerged as Bawag is facing mounting legal pressure for allegedly helping futures broker Refco Inc. hide $430 million in bad debt just before it went bankrupt.

The European Union requires all state subsidies to firms, including funds given to allow troubled...
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