Austrian government appointed a supervisor Friday to oversee Medici Bank, which is reeling from more than $3 billion in losses

Austrian government appointed a supervisor Friday to oversee Medici Bank, which is reeling from more than $3 billion in losses blamed on Wall Street money manager Bernard Madoff.Austria's Financial Markets Authority said it named Gerhard Altenberger to the post. Altenberger, a state financial inspector, will oversee all bank operations to ensure the stricken private lender "carefully adheres to all legal and contractual obligations," the agency said in a statement.Medici disclosed in December that it suffered huge losses it blamed on Madoff, who U.S. prosecutors say defrauded investors worldwide of $50 billion. Medici has said its biggest losses came from its Herald USA Fund and Herald Luxemburg Fund, which totaled $2.1 billion (euro1.5 billion). Both funds, along with other Medici investments, were exposed to alleged the scam.Medici CEO Peter Scheithauer and Werner Tripolt, who oversaw the bank's executive committee, both resigned Friday.