Minggu, 28 Maret 2010

Wolfgang Flottl and Helmut Elsner, the financial scandals at the Bank für Arbeit und Wirtschaft AG (BAWAG)


In forex trading we would never make a mistake and cause small and large losses in Demo or Real account. We introduce to you about two people who cause harm to a large bank in Austria that is the Bank für Arbeit und Wirtschaft AG (BAWAG). Losses due to foreign exchange transactions. Both men are Flöttl Wolfgang and Helmut Elsner. The total losses caused by them are for 1.4 billion euros (equivalent to $ 1.97 billion today - 2008). Event is known as the Refco scandal.

BAWAG Profile
Bank für Arbeit und Wirtschaft is a bank in Vienna, Austria with its mission as serving the Commercial banks banking, Investment banking, Private banking and asset protection clients. Established in 1922 and on October 1, 2005, the bank's merger with investment institutions Österreichische Postsparkasse (PSK) and the name was changed to "Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG", abbreviated as BAWAG PSK Actually the majority of shares Österreichische Postsparkasse (PSK) has been dominated by BAWAG. But not until the year 2005 the merger occurs.

BAWAG nearly bankrupt Refco scandal in 2005 with the receivables not collectible for 425 million, demand deposits and bonds bilyet In total for a 1.4 billion Euro for Forex transactions. The person is a party related to the internal Flöttl named Wolfgang and Helmut Elsner.

Unable to survive because of the large losses that the U.S. investment firm Cerberus Capital Management bought BAWAG with funds of 3.2 billion pounds.

Refco Profile

Refco is a futures brokerage firm that trades including forex, index and commodity. Founded in 1969 under the name "Ray E. Friedman and Co.." or shortened by Refco. In 2005 the volume of transactions Refco reached $ 4 billion in the year 2005 with the number of customers reached 200 thousand people. Refco also included in the list of brokers on the Chicago Mercantile Exchange

Scandal Wolfgang Flotti & Helmut Elsner

Financial scandals that began on October 10, 2005 where the CEO (Chief Executive Officer) and concurrently the leader of Refco, Phillip R. Bennett hid the $ 430 million without the knowledge of investors and auditors. In April of 2006 files Bennett crimes known customers from Bawag PSK Group (a member of the investment firm / hedge fund Liberty Corner Capital Strategy, which borrow money Refco). Can be concluded Bennett borrow money to BAWAG. Bennett handed the money to the $ 430 million investment company Ross Capital.

Wolfgang Flottl was a trader in the Capital mentradingkan Ross Bennett funds of $ 430 million. Before the public knows who carried out embezzlement Bennett, so Bennett did loan money again for 350 million euros to BAWAG to close the $ 430 million. BAWAG internal parties who approved the loan ceiling is Helmut Elsner Bennett. Problems began when the investment made by Wolfgang losers. This is complicated processes occur. Finally, Central Bank of Austria and the Financial Market Authority bodies know that something is wrong and investigate BAWAG's involvement with Refco.

Bennett finally arrested and ordered to pay all his debts. Overall Bennett, Wolgang, and General Director of BAWAG Helmut Elsner was arrested the authorities.

Because the act of speculation and fraud that hurt the bank BAWAG (largest bank in Austria 4), in the end (derived from AustriaTimes) Helmut Elsner and Wolfgang Flotti each sued for 9.5 years and 2.5 years in prison.

BAWAG bank scandal eventually brought a total of 9 people charged into custody. The huge losses experienced by BAWAG result of this company sold to Cerberus Capital Management LP in 2007.

Here are the mistakes made by Elsner causing heavy jail sentence:
1. Helmut Elsner banks lend funds to the U.S. futures are at Refco Inc. when it was in the bankruptcy.
2. Helmut Elsner was also accused guilty of lending money to Wolfgang Flotti because borrowing is based on risk and without liability. More than that, Elsner did not report the amount of borrowed funds after the funds had been loaned for speculation measures. He is also guilty of having received bonuses and retirement benefits that should not be accepted if from the beginning he had caused considerable losses.

As for Wolfgang Flotti not described in detail the action he did. However, as a hedge fund manager, he was prosecuted for actions that do not use the funds properly, fraud, and fraud in the reporting.

However, despite all that, according to AustrianTimes, Flotti Wolfgang Helmut Elsner and still have the right to request review of their case.

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Forex Terms


At this time I want to tell to you about the terms used in forex trading.


is a concept of technical indicators from Bill Williams to determine price trends. Is a combination of three (3) fruit and the Moving Average: 5,8,13. You can use it on the graph M30 (30 minutes) & H1 (1 hour). This indicator can be found on the MetaTrader software.

Technical Analysis

is an analysis in Forex trading to measure price movements over the price graph. The things that should be known from this technical analysis is the trend, saturation, support, ressisten, and Pivot Points.

Fundamental Analysis

is an analysis in Forex trading to predict price movements based on fundamental news. News here in the form Fundamental economic news, affiliated, and security that affect price movement.


is the position in Forex Trading for the Buy. Condition is if the price was going up significantly then you can open a Buy position.


is a branch of the particular technical indicators to determine areas of support-ressisten. The most famous and easy to use the Fibonacci Retracement. Other families are Fibonacci Arc, Ekspansion. Fibonacci device you can also find the Metatrader software.


is an investment that trade one currency with another currency. Is an abbreviation of Foreign Exhange or exchange foreign currency.


Is the leverage in Forex trading, where the comparison factor will be multiplied by the contract size.

Example is 1:200 with a mini contract is 10,000 margin account is used (1:200) x 10,000 = 50 units traded currencies.

For example an open position USD / JPY the margin used is $ 50. If trade with the GBP / USD then the margin is used for 50 Pounds Sterling. If converted to dollars is 50 times the rate of GBP / USD. Eg rate GBP / USD is at 1.4000 rate. Then used margin is 50 x 1.4000 = $ 70

For Standard accounts, contracts used by 100,000 Leverage is 1:100. The average opening of accounts per lot is $ 1000.


is guaranteed in forex trading. This term is associated with leverage. If Leverage 1:100 for mini accounts (10,000 contracts), the margin is used for 100 units of currency. Trading USD / CHF with a margin of $ 100. Trading EUR / USD to 100 euros or $ 130 if the rate of EUR / USD when it is at 1.3000.


is the value of 1 point rise or drop in price movements. For a mini account, 1 point is worth $ 1, for the standard account is $ 10.


are the points that are above the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.


are the points that are below the current price. Point of support can be drawn from the line at Fibonacci Retracement Time Frame H1 & H4.

Zig Zag

is a technical analysis tool to determine trends and support-ressisten prices.
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Euro Holds Most Of Relief Rally


* US Q4 GDP revised lower to 5.6% from 5.9%
* University of Michigan consumer sentiment steady at 73.6 in March from Feb
* Merkel: Europe isn’t in the position to solve such a problem on its own
* Greek central banker: Will not need to use aid
* ECB’s Bini-Smaghi: EU/IMF plan not ideal solution
* IMF: Always ready to consider members’ requests for aid
* S&P affirms Portugal’s A+ rating
* South Korean Naval ship sinks near border; early reports of N Korean attack downplayed
* IMM specs short a record 75,000 EUR contracts
* US equities close virtually unchanged
* US yields ease slightly; 2-year note 1.06; 10-year note 3.85%

EUR/USD closed at its highs Friday afternoon, around 1.3423, underpinned late in the day by news that speculators are short a record number of EUR contracts on the IMM. Narrower Greek yield spreads over Germ,an bunds helped as well as Trichet muted his earlier criticism of IMF participation in the Greece safety net.

Central bank offers are seen at the 1.3430 area, just below the 1.3435/45 level which defined the base of the range for nearly a month. Large stop-loss buy orders are clustered around the 1.3465 level.

USD/JPY took a breather in US trade, consolidating recent gains after stalling below 93.00. Heavy offers are seen at the 93.00 level and again toward 93.50. US funds remain buyers on dips to the 92.30/40 region.

AUD/USD was pressured by profit-taking today with many macro accounts selling long AUD. covering short EUR positions. AUD/USD fell to 0.9002, holding above the 0.8994 level which is the 38.2% retracement of the 0.8575/0.9250 rally. Read More



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