Bawag – refco – balance sheet on reciprocity?

The Easter-rich trade union bank and the world-growing independent, Prime Broker ‘have been entangled thanks to common interests in one of the largest financial coverage chandel of the young

In the summer of 2005, the Easter-rich trade union bank BAWAG-PSK had advised international headlines because they had overhead of 350 million dollars at whose Boss Phillip Bennet had a few hours before bursting the Refco Scandal. The Brokerhaus Refco, which had profiled itself as a full-service provider as a full-service provider, especially for hedge funds as a full-service provider, was only a few weeks earlier to the borse. Bennet, who obviously concealed uncollectible claims for years, had failed to ensure "order" in time for the balance sheet date and to transform the losses in "valuable" demands. In particular, a new employee in the Refco accounting had not been brought to line in time, which would love the course in the US land-bearing scandal.

At first it had looked at the beginning, as the Bawag had once again had a "Small Austrian Wannabe" from Greed and Naivitat from a Wall Street Fuchs to the cross, the matter turns out to be a desperate attempt of BAWAG, a loss hiding almost three times as high as that, the Refco implodes. Where the interests of Refcos and BAWAG, which was revealed from 1996 to 2004 to 46 percent of the Bavarian Landesbank, apparently ideally investigated.

The bomb bursted on 15. Marz 2006, when Bloomberg brought the so-called "phantom bonds" in the financial lines and in close relationship with BAWAG. "Suddenly half a billion dollars had just disappeared to liabilities," Bloomberg cited the lawyer of a Refco-credible group. "Nobody appeared to preserve a claim in court. It was as if they had never existed."

And actually: After the international economic media had speculated extensively about the BAWAG connection, the newly used Director General Ewald Novotny and his vice Stephan Koren, as well as the long-term Supervisory Board Helmut Wenninger on the 24. Marz to the "coarse confession". As far as she had the matter throughout, they wanted to lay the whole truth on the table, acted the directors. For the time being, but above all, she gave her own ignorance.

Thus was Novotny, the UBLIGEN as a highest integer, at the time of the Affare nor Financial Professor and Speak Advisory Speaker of the Spo, Father Vice General Director of the European Investment Bank (EIB) and now only a few weeks in the bank. Although Koren had already hired in 1998 at BAWAG, but it was probably not inaugurated at that time, he was obvious politically to the wrong, namely to the OVP camp. Only one on the podium knew from the beginning: BAWAG Supervisory Board Weninger, who also immediately explained his jerking as a supervisory board and OGB financial boss. After his segregation, he had "saved" the BAWAG and not to accuse himself.

What happened?

The story is about twenty years back. For example, BAWAG had begun to expand in new businesses in the mid-1980s in the mid-1980s, which were approximately the Deals of today’s hedge funds and also handled auberbilanziell. Know-how-encoder was the (besides Refco-boss Phillip Bennet) a dazzling figure of the Affare, the son of the long-term general director Walter Flottel, Wolfgang Flottel, on which the good contacts of Bawag to date should be back to high financing. Thanks to his marriage with Anne Eisenhower, Prasident Dwight D.’S granddaughter, belonging, fleptl’ as he is interested in the USA, to the US ESTALLISHEMENT. He is still missing today with barely a New York Society Event, is gross dispenser of various charitable and cultural institutions, and again and again came as an eager builders or selling valuable paintings of Picasso, Cezanne and Degas in the media. On the Bermudas he shared with Silvio Berlusconi and Ross Perot a peninsula.

Today is Flottel (now divorced and recently with his wife married, what the suspicion of succession, he had so wealthy via marriage contract in security) without injected, paid Koren in the context of the "confession". Because this had recycled the BAWAG 2001 and received significant sums. Should he ever come to money, the BAWAG was also entitled to claim. During the Flessl but still assessed, the said losses did not have caused, the Easter Public Prosecutor’s Office already unsuccessful an arrest warrant.

The 101-year FLOTTL, who "studied" so good ", as Daddy Ex-Chancellor Franz Vranitzky reminds himself, has its business at Harvard Business School and Wall Street InvestmentBank Kidder, Peabody CO. learned where he allegedly worked up to the vice-prassident in just six years. In June 1987, he was based on Easter Rich sources on the Bermudas the Investment company Ross Capital Markets Ltd., but according to research the Royal Gazette appearing there, however, only in 1991 should be. In any case, in any case, in any case, he then found further companies such as "International Asset Management" and "EBT Securities Ltd" (which was also involved in BAWAG), where the current head of the local financial supervision was called Managing Director Tive. These had been at their time the prototype of technical high-tech trading, writes the "Royal Gazette":

The traders worked around the clock to make calculated, crisp edge businesses in a variety of.

Arvind Krishnamurthy, who had acted in 1993 and 1994 for Ross bonds, paid the "Prudent Investor" that Ross had snapped the handlers a lot of autonomy in their decisions:

We were organized in small groups who have persecuted their own strategy and got capital assigned.

"Ross Capital" and "International Asset Management" are still in the phone book, but under the specified number, only an answering machine of the "International Asset Management", and at the specified address, is no longer a trace of businesses to "Royal Gazette" Find.

The role model for the working style of "Ross Capital" apparently gave FLOTTLS Fruherer employer "Kidder", where more than elsewhere was risky and fired, who made no profits. In the mid-90s, Kidder carried out a lot of Wall Street scandals in a leading position and had to be saved after huge losses on the 1994 bond portfolio of General Electric and disappeared later from the Bildflat. At this time, the young FLOTTL, however, became known for the first time of a broad Easter-rich openness. Because in 1994 it was ruchar, that Father Fleptl his son personal BAWAG loans over 23 billion shillings (RD. 1.5bn. USD), whereupon "Financial Times" six business banks wanted to reduce their credit lines with BAWAG and broke out some media excitement. Because such speculative goods had already not so tipped for a trade union bank.

Then the BAWAG had at least officially ended the "Caribbean farms"; The loan was promptly and completely jerked and the BAWAG has come out of the matter without losses, but at that time, what does not seem very credible today today. Until then, FLOTTL had also paid good money to the information and the trade union bank can only meet thanks to these speculative gains to its claim, to give its private clients the best conditions.

On the Heibulled Easter Rich Bankplatz, where the interest margin is traditionally significantly lower than (with the exception of Finland) otherwise otherwise in Europe, the BAWAG had actually designated average profits for years, so that hardly anyone at the representation doubted, the Bawag has just been speculated. And so did not surprise that the new General Director, FLOTTL-INTIMUS HELMUT ELSNER, opened in a radio interview in the next summer, that you only briefly interrupted the profitable businesses and will soon resume.

And again, FLOTTL JUNIOR was the partner. Which businesses were made exactly, the board members declared very vague. BAWAG was "initially involved directly, later in the form of loans". The losses should be incurred mainly in 2000, with Novotny paid by a Japan interest rate swap, which in connection with the Asian crisis in October 2000 to Margin Calls and alone a loss of 350 million. Euro caused it, striking it at the confession. In the meantime, however, information has emerged which indicate that the losses in part already results from 1995 and probably already had a prehistory. So alter losses may have been required in 1995 extensive payouts and have enforced the resumption of the "business" so forced.

Operation coverup

According to Protocol Nr. 246 a BAWAG Supervisory Board meeting of 17. September 1998, in the Elsner of "additional financing options in the volume of 89 million. USD "speaks" worshiped by FLOTTL, but it is called:

The DR. FLOTTL WASHED SPECIAL DAY ARE A VOLUME OF USD 550 MILUE. On, from this we have since 1995 a yield of 554.0 million. laughed.

Already in 1995, however, according to press information, however, 500 million. Have missed euros, in 1998 goods again so much and 2000 another 350 million euros to miesen. Nothing has been officially known how much to endure. In the year 2000, the "confession" had received "cold bare" and be "agreed", as it gave off the businesses in the Bawag Strabe.

According to Novotny, at the end of 2000, after about 1.3 billion euros, it should look at hidden losses; Ultimately, it had become 999 million euros – in any case, to a bank with barely 1.2bn. To sink euro to core capital. Whereupon the book promoters of KPMG refused to ie a "unrestricted confirmation note" without additional capital without additional capital – a catastrophe, especially as elections in front of the tur.

Now a consecrated grupp started a coverproofing action, which never came to light without Refco bankruptcy. For the time being, the BAWAG board had only informed AR-boss less, which at the same time was a financial boss of the Easter-Rich Trade Union Confederation (OGB). He and OGB boss Fritz Zezetnisch now decided to hide the matter for the Supervisory Board and "together with the book promoters" to find a solution that BAWAG should protect against damage.

The solution found was now out of making worthless assets worthy by having a guarantee of the OGB. In addition, the famous "strike funds" of the OGB was used, whose high of one of the best-approved secrets is Austria and it is to be born above all from BAWAG shares, which were allowed to have been of doubtful value at that time, if in fact the danger of a bank Run had passed. Apparently, the strike fund alone was not sufficient for the entire warranty, because BAWAG also had to legally legend.

Since the guarantees were partly via OGB companies, there are probably even more informed by OGB companies within the OGB over the two main swirls, at least partially informed, but otherwise absolute secrecy existed. Thus, Wenninger’s deputy in the Supervisory Board Werner Schmitt, the boss of the 46.1 percent owner Bayrische Landesbank, was equally informed as (allegedly) Spo-boss Alfred Gusenbauer, Minister of Finance Grasser and the Easter Financial Market supervision, which of BAWAG without guarantee probably the banking license had had to escape.

Presumably, however, a lot of information is also landed on the page Refcos, otherwise Refco had probably accepted the worthless bonds hardly for years. Unknown is still whether the Refco losses that have arisen according to Bennet caused by uncollectible claims to customers have something to do with FLOTL / BAWAG. In US media, this is always supposed to come back to the light, the facts but probably only in the course of the ongoing US procedures, where it is likely to be clarified, what Refco has received from BAWAG as a consideration for help. For the time being, since BAWAG is officially for sale, this is a non-undisable process risk. According to Koren, however, no fault of BAWAG is given to the REFCO bankruptcy and are also foreseeable no claims for damages. BAWAG also had hardly any US assets to which US resists could possibly take access, as Koren, who had to admit in the same breath, but also not exactly informed about the situation here.

It is also unclear how the relationship of BAWAG and REFCO was accurate. From the beginning to the end of the 1990s, FLOTTLS had acted "Ross Capital" for foreign exchange, futures and bonds over Refco and FLOTTL made contact with BAWAG guided. FLOTTL, which could now lead to the Bermudas in the "best circles" and, for example, with the then Premier Sir John Swan an eight-storey "Front Street Headquartete" had developed. However, this failed in 1995 and FLOTTL asked his jerking according to "Royal Gazette" then to consolidate his businesses in New York, where he spend more time than on the Bermudas.

Meanwhile, relations between the trade union bank and the strongly growing broker house deepened. For example, BAWAG was officially involved from 10 percent of REFCO from 2000 to 2004 (where documents suggest that the participation of BAWAG could still have been gross and have passed more than officially known), a Refco daughter had its seat at one Wiener Bawag Address and several Refco employees had their official workplace in the Wiener Handelsraum of BAWAG. As a problem for BAWAG, it could also prove that, in the event of a quarter-year balance sheet days in the beisers, short-term receivables refocuses to BAWAG, which appear at least every suspicious in the light of the new findings now. So far, BAWAG in the US is not yet under indictment.

While BAWAG had officially sold its Refco shares, she bought in August 2000 but for 17.6 billion. Shilling (around 1.3 billion. Euro) The Easter-Rich PostSpare Bank (PSK) of the Easter Royal State Holding OIAG, which has probably not been possible, had known the aggregate – and a Refco subsidiary in the course of the very complicated fusion, which was held for a period of 25 percent of the PSK shares.

The then BAWAG General Elsner had still claimed in July, to have "no financing problems" when buying – much more should be solved with the purchase but probably those of BAWAG. Because the loss cleanup seems – unlike the Friday PK claimed as it striked, one had compensated for the losses by own profits – above all by way of evaluating in the Zug the merger with the PSK, but the BAWAG also out had contributed its own strength. The high gains incurred in 2004 from the sale of Bulgarian mobile participation (MobileTel), which quantifies insiders with up to 400 million euros, were not a significant rainfall in the official balance sheet and were allowed to be booked on the Caribbean account.

Oberdies should have been upgraded to Casinos-Austria and Lotteries, and only in the fall of 2005, in the course of the very complicated-constructed final merger of BAWAG and PostSparkasse, the evaluation of BAWAG increased by more than half a billion euros, which causes Only 120 million is only 120 million. Euro for the participation in a casino in Jericho should be remained in Jericho – but this, however, a project, where the BAWAG share was officially led by no more than 50 million euros, the main part, on the other hand – in turn after official information – from Casinos Austria and the Easter-rich businessman and long-term caribbean partner of BAWAG Martin Schlaff had come.

In the balance sheets 2003/2004 of BAWAG, there were hardly any indications of the coverproofing action. However, in the further information on the balance sheet 2004, the PSK guarantees for Group loans in favor of BAWAG Uber 2,74835 MrD. Euro, after just under 1.4 billion. One more year ago; The note that no statements are made to guarantees associated with BAWAG owners due to banking secrecy. Something weird also confesses that BAWAG has equipped her daughter in Malta with 500 million euros in capital, while she could only account for thanks to OGB warranty.

Stephan Koren, who was made to the PSK General in 2000, had not known by the losses at that time, nor that the PSK for the losses of BAWAG have just had to stand. If the losses have actually existed in 1998, it seems possible that Bawag General Elsner has already brought the OVP man to Bawag exactly. Because Koren had once organized as a cabinet secretary the so-called shot / Ditz course of the Father Chancellor and was only with the change of the then Minister of Finance Johannes Ditz to the Beteiligungsholding OIAG excreted from the Cabinet and landed in the Bawag in 1998.

While OIVP man Ditz in the OIAG organized the PSK sales, Koren had made a career at the BAWAG, was the business of BAWAG INVEST CONSULT, then director with general power and at the end of 2000 he was used after successful use of Elsner as PSK General Director, what the political resistance of the conservative government against a sale of PSK equipped with high-quiet reserves to the "red" BAWAG was largely reduced. Worninger, who indicated the "confession" that the cover-up has taken place in close cooperation with the caregivers is to be confident that he may have dared the "salvation" only in this way, because it was already clear how to rescue risk PSK takes place KONNE.

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