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.
Bank Medici, which channelled up to $3.6bn into Mr Madoff's asset management firm, said on Friday it would challenge the government's decision to take control of its management.
However, Sonja Kohn, Bank Medici's president and majority stakeholder, has said she will co-operate with the authorities. Bank Medici's two chief executives, Peter Scheithauer and Werner Tripolt, resigned on Friday, though Mr Tripolt is expected to be reappointed to a new managing board.
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