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| Bank Medici caught in Madoff scandal |
| 2009-01-03 |
| 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 |
| #2 "Austrian private bank Medici was placed under state supervision" Yeah, like that'll help. Fox, henhouse, etc.... |
| Posted by: Barbara Skolaut 2009-01-03 16:20 |
| #1 Damn Bank Medici? Your choice of Dagger or Poisoned Chalice with your deposit of 10K or more. |
| Posted by: .5MT 2009-01-03 07:15 |