Vienna poised to take control of Bank Medici

The Austrian government is preparing to take control of Bank Medici, a Vienna-based private bank, which has revealed losses on funds that invested with Bernard Madoff, the disgraced financier.

Earlier this month, Peter Scheithauer, the chief executive of Bank Medici, confirmed that clients of the bank, which had $3.6 billion under management at the end of September, had invested in two funds run by Madoff.

Scheithauer said the collapse of the Madoff venture would not affect Bank Medici, as onl