Financial Times FT.com

Austria takes control of Bank Medici

By Eric Frey in Vienna and Francesco Guerrera in New York

Published: January 2 2009 12:38 | Last updated: January 2 2009 18:45

Bernard Madoff’s alleged $50bn fraud on Friday claimed its biggest victim to date as the Austrian government was forced to take control of Bank Medici, which might have lost more than $3bn in the scandal.

Vienna has appointed a supervisor to run the private bank – the first time a government has had to step in to oversee a victim of the “Ponzi scheme” allegedly committed by the New York financier.

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