Embattled Austrian Bank Offered Clients 10% Cash as License Went

Anglo Austrian AAB Bank AG told clients with large deposits this week that they were at risk of losing their money after the European Central Bank revoked its license, and offered them to return 10% of deposits with cash and 90% with loans secured by claims the bank has against others.

“There is a risk that this could result in a near total loss in particular for larger depositors in AAB,” the bank said in a letter to large depositors seen by Bloomberg News. “The payment of the remaining 90% of the amount of your deposit will be deferred and ...