Cernko Criticizes VBAG Bail-Out

More+Comment ♦ Published: March 9, 2012; 12:59 ♦ (Vindobona)

Willibald Cernko, CEO of Bank Austria considers that the Austrian state reacted too late. A partly nationalization could have taken place already one year before.

Cernko Criticizes VBAG Bail-Out / Picture: © UniCredit Bank Austria

The management of the VBAG-crisis by the state was “not optimal”, Cernko says. One year ago, when VBAG faced serious troubles already, the state could have injected new equity capital into VBAG. In that case, the Volksbanken, which are the major shareholders of VBAG, would have been not forced to raise capital too.

Cernko is also dissatisfied with the increase in the bank…