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Austria's Medici seeks revamp after Madoff hit

VIENNA, Jan 9 (Reuters) - Austria’s Bank Medici, one of the biggest victims of Bernard Madoff’s alleged $50 billion fraud, made two appointments to its board and is working on a new business model, the bank said on Friday.

Medici’s CEO Peter Scheithauer resigned earlier this month and the bank was placed under state supervision after it sold more than $3 billion of Madoff-exposed funds to investors.

Madoff was charged last month with securities fraud in what U.S. authorities say was an investment scam. Investors are still reeling from the fallout.

In a statement on Friday, Bank Medici said John Holliwell, a British banker, was appointed to the bank’s management board and Werner Tripolt has been reassigned to it. Tripolt had resigned on Jan. 2 along with Scheithauer.

Bank Medici supervisory board member Johann Farnleitner told Reuters the plan should be completed in the next six to eight weeks and then gradually implemented.

He declined to talk specifics about the bank’s Madoff exposure.

“It doesn’t make anyone happy to speak about this (Madoff) damage,” Farnleitner said, adding the meeting was about Medici’s future, not the funds.

“The size of the exposure of the funds does not interest me at all at the moment,” he said, adding that Medici itself had possibly lost money too and a large part of its budget.

Bank Medici, which is co-owned by UniCredit's CRDI.MI Bank Austria, said chairwoman and majority owner Sonja Kohn presided over the meeting to elect the board members. (Reporting by Sylvia Westall; Editing by Sharon Lindores)

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