Bawag To Settle With Feds Over Refco Fallout

Law360, New York (June 2, 2006, 12:00 AM EDT) -- In a bid to avoid a criminal indictment in the United States, Austrian lender Bawag PSK Group has settled out of court with federal regulators for an amount that may exceed $600 million for its alleged role in the collapse of futures broker Refco Inc.

Austrian trade union OEBG, Bawag’s owner, said the terms of the settlement agreement will be revealed next week, according to Dow Jones.

The settlement could cost Bawag as much as $675 million and could include a demand that an investment bank...
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