European Banks Admit to Exposure in Madoff Fraud
Wednesday, December 17, 2008 16:50
Yesterday, the alleged $50bn fraud by New York financier Bernard Madoff cut a swathe through Europe’s banks as a dozen of the continent’s biggest lenders admitted a potential losses amount to $10bn.
The nationalied Dutch arm of Belgian bank Fortis admitted losses could reach €1bn, while HSBC, Santander of Spain and Union Bancaire Privee of Switzerland all have exposure of $1bn or even more. RBS just admitted to a loss up to to ￡400 million.
As in an attempt to ascertain assets that could be sold to pay back, federal investigators and the court-appointed receiver sifted through Madoff’s New York headquarters, and the number of victims continue to increase.
A new wave of withdrawals by clients is expected to come in the near future and needed to be beared by Hedge funds. The scandal has called great concern from people to the question about the business model of funds of funds.
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