The former head of one of Austria’s biggest banks, Bank Fuer Arbeit und Wirtschaft (Bawag), has been arrested in France on fraud charges.
The Austrian Justice Ministry said French authorities had seized Helmut Elsner, Bawag’s ex-general director.
Bawag has been under investigation for lending ex-Refco CEO Phillip Bennett several hundred million dollars before US brokerage filed for bankruptcy
One of Austria’s biggest banks, Bank Fuer Arbeit und Wirtschaft (Bawag), is to pay $675m (£361m) to settle claims it helped a US brokerage commit fraud.
US authorities said the large payment was related to its dealings with the now defunct brokerage Refco.
As part of the deal Bawag admitted helping hide bad debt at Refco
Financial watchdogs have launched an inquiry into Austrian bank BAWAG’s 350m euro ($418m; £237m) loan to the ex-boss of crisis-hit US finance firm Refco.
Austrian regulators are investigating if BAWAG followed proper rules when it granted the loan to Phillip Bennett.
Refco has been struggling since its former chief executive was charged with fraud and concealing a $430m loan ahead of a stock market flotation