CNN reports: Austria takes over bank hit by Madoff case.
The Austrian government has taken control of a private bank with significant exposure to the alleged fraud by Bernard Madoff.
Austria's market regulator, the FMA, installed a supervisor to take control of Bank Medici on Friday, saying the move would address the danger that the bank would not be able to pay its creditors.
Bank Medici, a private bank, announced in December that it had $2.1 billion in exposure to Madoff's investment securities through hedge funds run by the bank. Bank Medici also said its status was "solid" and that it had no liquidity problems.
If it doesn't have any "liquidity problems", why is the government intervening?
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