Financial Times FT.com

Bawag rescue approved but the lawsuits loom

By Eric Frey in Vienna and Haig Simonian in Zurich

Published: May 9 2006 03:00 | Last updated: May 9 2006 03:00

Austria's parliament yesterday passed a rescue package for troubled banking group Bawag with all politicalparties voting in favour.

The approval lifted one of the uncertainties facing the troubled trade union-owned bank, but came just as new questions were raised about Bawag's vulnerability to legal action by disgruntled shareholders and customers of Refco, the failed USbroker with which it was associated.

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