Follow the money

One of the banks involved in the Refco scandal was Bawag PSK. In following the connection between Refco and Bawag, investigators discovered that Bawag had been covering up its own chicanery. It seems that the son of a Bawag CEO had bilked the bank out of more than $1 billion back in the late 1990s, but the bank was hiding the fact. Now with new management the bank has sued the son for $1.4 billion. The son also is facing criminal charges in Austria. It's too bad that he will be tried in Austria. Otherwise, he could have shared a cell with the Refco chairman.