Business news online

The Austrian government will take control of Bank Medici

After the Bank Medici admitted that he owned investment funds to invest in scandalous known New York stockbroker Bernard Medoffa (Bernard Madoff), resulting in losses of depositors, the Austrian Government is preparing to assume management of the bank, said Financial Times.

While the scandal with Medoffom suffered losses and other banks, including HSBC, BNP Paribas, Santander and Fortis, and a number of charitable organizations had to close, the scandal has not yet led to the collapse of any financial institution .

At the end of September, Bank Medici had about 25 employees and approximately $3.6 billion in government.

In December, general director of Bank Sheytauer Peter (Peter Scheithauer) acknowledged that customers Medici invested $2.1 in two different fund Medoffa. At the time, Sheytauer argued that the collapse Medoffa not affect Bank Medici, because it was not about the assets of the bank, but its clients.

If the Government decides to intervene, the Austrian finance and oversight agency FMA will appoint state Commissioner, who will responsible for daily operations Bank Medici and decide whether the Bank to continue its work. According to Austrian law, the Commissioner may be appointed if there is the risk of bankruptcy or a risk for deposits.

Commissioner may eventually allow the Bank to continue to work, and even put it back under the control of owners. In the case of Bank Medici such an outcome seems unlikely, since 70% of the bank related to its investment activities, much of which was perepletennoy with activities Medoffa.

It is not yet clear whether leaders uderzhatsya Bank Medici Sheytauer and Vernet Trifolt (Werner Tripholt) in their posts.