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Article: REPORTERS' NOTEBOOK.(NEWS)
- Article from:
- Crain's Cleveland Business
- Article date:
- October 5, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Bernie Madoff strikes again
Until Dec. 11, 2008, Austin Capital Management Ltd. was "the best acquisition the bank (Key) ever had, according to David Brown, chief operating officer of KeyCorp affiliate Victory Capital Management.
Then Bernie Madoff hit.
Austin Capital, a Texas hedge fund, had been invested in "certain Madoff-advised "hedge' funds, KeyCorp said in a May 11 filing with the Securities and Exchange Commission, and lost about $186 million. In April, Victory Capital Management began to shut Austin down.
That process is about halfway done, Mr. Brown said. But he called the decision to do so one of the hardest he has made.
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