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Bank Medici caught in Madoff scandal
The Austrian private bank Medici was placed under state supervision amid greater exposure to the Bernard Madoff scandal than previously disclosed. Medici said last month that two funds -- Herald USA Fund and Herald Luxemburg Fund, with a total volume of USD 2.1b - were exposed to the alleged fraud but did say by how much money was involved. Austria appointed a supervisor to the bank, financial regulator FMA said, in the first known case where a government has stepped in to run a bank caught in the alleged USD 50b Madoff fraud. The regulator also said Bank Medici's chief executive Peter Scheithauer and board member Werner Tripolt have resigned. The appointment of a government supervisor means the bank cannot take any major decisions without state consent. The bank -- founded and largely owned by high-profile banker Sonja Kohn, whom media say has close ties to Madoff -- said it would cooperate fully with the FMA. Posted by: Fred 2009-01-03 |
| http://www.rantburg.com/poparticle.php?ID=258848 |