VIENNA, Dec 6 (Reuters) - Austrian banking watchdog FMA has ended its probe of Austria's BAWAG P.S.K. after the bank's chief decided to step down over a loan made to the head of collapsed futures trader Refco, BAWAG said.
BAWAG made the 350 million euro ($409 million) loan to a firm controlled by then Refco (RFXCQ.PK: Quote, Profile, Research) Chief Executive Phillip Bennett on Oct. 10, a day before he was arrested for securities fraud and shortly before Refco filed for insolvency.
The FMA decided last month to launch an in-depth investigation into the loan approval following an on-site probe by officials from the Austrian central bank.
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After a supervisory board meeting on Nov. 17 convened to discuss the FMA's probe, BAWAG Chief Executive Johann Zwettler said he would resign by the end of the year to take responsibility for the loan loss.
But the bank said Zwettler and his board were deceived by Bennett and by Refco itself, and is suing Refco and Bennett to recover the loan money.
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