Austria Seizes Madoff Feeder Bank Medici

Down goes another Madoff domino, Bank Medici. We expect that Tremont, Fairfield Greenwich, and other feeder firms will soon follow.

WSJ: In another sign of the far-reaching misery caused since the investment-advisory business imploded in December, the Austrian government said Wednesday it will take over management of Bank Medici, a Vienna bank that had large losses with Mr. Madoff.

Austrian authorities began investigating Bank Medici following reports it had placed about $2.1 billion in funds controlled by Mr. Madoff, according to people familiar with the matter. The takeover won’t include any infusion of funds for the bank.

See Also: Bernie Madoff’s Victims: The Slideshow

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