BAWAG $1.10 Billion Losses
BAWAG is a private limited bank and is an entity in the financial and insurance sector. Established in 1922 in Austria, it has its headquarters in the capital city - Vienna. Some of the services that it offers are investment banking, commercial banking, private banking and asset management. BAWAG offers online banking facility along with online support for customers. Few years ago, BAWAG suffered a huge amount of losses owing to having used unreasonable investment tactics in off-balance-sheet medium. It also lent the hundreds of millions 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 …show more content…
Together, they built up a successful partnership. After the successful run with Cerberus, BAWAG’s struggle seemed to be finally drawing to a close. The new ownership brought about a fresh start and BAWAG invested about 250 million in Austria’s retail market. But the main factor in restoring its reputation was that of flawless customer service along with strong focus on product development for the satisfaction of customers. By offering support to the customer and putting their best foot forward, the giant BAWAG was able to regain its earlier reputation and prosperity.
Conclusion:
BAWAG is an example of the important role that ethics play in running a business. What was once a ruling conglomerate in Austria came crashing down simply because of a few errors and misjudgments thus validating Newton’s gravitational law that what goes up must come down. It is also a lesson in trustworthiness wherein checking on the prospective partner’s background prior to signing on the dotted line is a must.
That said, this case is also proof enough of the fact that resilience is an important attribute in corporate sector and all it takes is playing your cards with care and caution in order to make a recovery. Of course, smart choices also make a difference and for BAWAG it was a combination of all three that enabled it to return to its pinnacle from where it had once been unceremoniously
BAWAG is a private limited bank and is an entity in the financial and insurance sector. Established in 1922 in Austria, it has its headquarters in the capital city - Vienna. Some of the services that it offers are investment banking, commercial banking, private banking and asset management. BAWAG offers online banking facility along with online support for customers. Few years ago, BAWAG suffered a huge amount of losses owing to having used unreasonable investment tactics in off-balance-sheet medium. It also lent the hundreds of millions 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 …show more content…
Together, they built up a successful partnership. After the successful run with Cerberus, BAWAG’s struggle seemed to be finally drawing to a close. The new ownership brought about a fresh start and BAWAG invested about 250 million in Austria’s retail market. But the main factor in restoring its reputation was that of flawless customer service along with strong focus on product development for the satisfaction of customers. By offering support to the customer and putting their best foot forward, the giant BAWAG was able to regain its earlier reputation and prosperity.
Conclusion:
BAWAG is an example of the important role that ethics play in running a business. What was once a ruling conglomerate in Austria came crashing down simply because of a few errors and misjudgments thus validating Newton’s gravitational law that what goes up must come down. It is also a lesson in trustworthiness wherein checking on the prospective partner’s background prior to signing on the dotted line is a must.
That said, this case is also proof enough of the fact that resilience is an important attribute in corporate sector and all it takes is playing your cards with care and caution in order to make a recovery. Of course, smart choices also make a difference and for BAWAG it was a combination of all three that enabled it to return to its pinnacle from where it had once been unceremoniously