Financial Case Study: BAWAG $ 1.10 Billion Losses
BAWAG $1.10 Billion Losses
BAWAG is a private limited bank; it is working in financial and insurance sector. BAWAG was established in 1922 in Austria and its’ headquarter is in Vienna, Austria. The main service from BAWAG is Investment banking, Commercial Banking, Private Banking, Asset Management. BAWAG offers their online banking facility along with different customer online support. . Few years ago, BAWAG faced a huge amount of losses due to using unreasonable investment in off - balance - sheet medium. They also lent the hundreds of millions of bucks to the former chief executive of Refco, Phillip Bennett, who was involved in bankruptcy. The Austrian bank BAWAG used the US broker Refco Inc. and its’ offshore companies and accounts to cover about $1.10 billion of losses. That huge amount of loss pushes BAWAG to a insolvency situation.
BAWAG’s state before the loss:
There was an affluent history of BAWAG before the scandal of $1.10 billon losses. The fifth bigger bank of Austria, BAWAG purchased the majority number of share of P.S.K and became BAWAG/PSK group. After purchasing the PSK group, it became the third largest bank group of Austria. Then, they had about 45 billion Euros in their balance sheet. The number of the employees of this …show more content…
Altogether, they did a successful business. After the successful sale with Cerberus, the struggling days of BAWAG had come to an end. The new owner’s equity contribution fills the rest liability of the Austria Republic. With the new ownership, the new days had started. BAWAG invested about 250 million in retail of Austria. But the main reason behind getting back the previous reputation is flawless customer service along with strong focus on product development for the satisfaction of customers. By serving their best service and support to the customer, the giant BAWAG regain its earlier reputation and
BAWAG is a private limited bank; it is working in financial and insurance sector. BAWAG was established in 1922 in Austria and its’ headquarter is in Vienna, Austria. The main service from BAWAG is Investment banking, Commercial Banking, Private Banking, Asset Management. BAWAG offers their online banking facility along with different customer online support. . Few years ago, BAWAG faced a huge amount of losses due to using unreasonable investment in off - balance - sheet medium. They also lent the hundreds of millions of bucks to the former chief executive of Refco, Phillip Bennett, who was involved in bankruptcy. The Austrian bank BAWAG used the US broker Refco Inc. and its’ offshore companies and accounts to cover about $1.10 billion of losses. That huge amount of loss pushes BAWAG to a insolvency situation.
BAWAG’s state before the loss:
There was an affluent history of BAWAG before the scandal of $1.10 billon losses. The fifth bigger bank of Austria, BAWAG purchased the majority number of share of P.S.K and became BAWAG/PSK group. After purchasing the PSK group, it became the third largest bank group of Austria. Then, they had about 45 billion Euros in their balance sheet. The number of the employees of this …show more content…
Altogether, they did a successful business. After the successful sale with Cerberus, the struggling days of BAWAG had come to an end. The new owner’s equity contribution fills the rest liability of the Austria Republic. With the new ownership, the new days had started. BAWAG invested about 250 million in retail of Austria. But the main reason behind getting back the previous reputation is flawless customer service along with strong focus on product development for the satisfaction of customers. By serving their best service and support to the customer, the giant BAWAG regain its earlier reputation and