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Madoff Ponzi Scheme Fraud Hits Banks Worldwide
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by Tina Kells | December 15, 2008 at 10:39 am
920 views | 6 Recommendations | 5 comments
The Madoff Ponzi scheme fraud has gone international with the announcement today that banks in the EU have also taken million dollar hits from their dealings with Bernard L. Madoff Investment Securities LLC.
Banks and financial institutions across the world had investments with Bernard Madoff, but not all have yet confirmed what their potential losses might be.
Among the largest potential losers so far is Spain's largest bank, Santander, which also owns the UK High Street banks Abbey, Alliance & Leicester and Bradford & Bingley.
One of its funds had $3.1bn invested in the firm run by Bernard Madoff
Britain's HSBC said it had investments of about $1bn which could be affected.
Royal Bank of Scotland said it could potentially lose about £400m ($601m) if all its investments had to be written off.
The French bank, Natixis, a subsidiary of Caisse d'Epargne and Banque Populaire, said it could potentially lose up to 450m euros (£402m; $605m).
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On December 12, 2008 Bernard Madoff, former NASDAQ chairman and Wall Street fixture was arrested by the FBI on charges of fraud. A civil complaint against Bernard Madoff and the investment firm he founded in 1960, Bernard L. Madoff Investment Securities LLC, has been filed by the United States Security and Exchange Commission (SEC).
According to the SEC complaint against Madoff, he admitted to senior employees that his business was a fraud and that Bernard L. Madoff Investment Securities LLC was effectively running a decades old Ponzi scheme that began in 1960 with the incorporation of his namesake investment company.
Due to the collapse of the US Markets in recent months Madoff was left broke and the once successful Ponzi scheme was exposed. Also exposed in the resulting Madoff arrest was a woeful lack of effective monitoring of regulations in the US financial sector, as well as a lack of due diligence on the part of many money market managers.
"I just want to make it clear to investors that even after this, they would have done extremely well, relative to anything else they could have invested in," she said.In a statement, Bramdean said: "The allegations made appear to point to a systemic failure of the regulatory and securities markets regime in the US."
However, some argued that the fund managers should themselves have done more.
"City figures cannot call for light touch regulation yet at the same time complain that regulators missed risks that the industry failed to spot," said Simon Morris, a partner with City law firm CMS Cameron McKenna.
The list of individuals and establishments impacted by the $50 billion Madoff Ponzi scheme scandal keeps growing. As of December 15, 2008 the following individuals and entities had been identified as victims of the Madoff Investments fraud:
Meanwhile, some of the biggest private losers seem to have been members of the Palm Beach country club, where many of Mr Madoff's wealthy clients were recruited.
According to some reports, the list of prominent victims include a New Jersey Senator, the owners of the New York Mets and the charities run by film director Stephen Spielberg and Nobel Prize winning writer Elie Wiesel.
Major Potential Losses:
Santander, Spain - $3.1bn HSBC, UK - $1bn Natixis, France - $605m Royal Bank of Scotland, UK - $601m BNP Paribas, France - $460m BBVA, Spain - $400m Man Group, UK - $360m Reichmuth & Co, Switzerland - $325m Nomura, Japan - $303m
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at 12:09 on December 15th, 2008
-as well as a major doner to the democratic party heads
at 13:08 on December 15th, 2008
And not a mention of Robert Rubin who was indicted the same day,stole more then twice the amount then Madoff. Hmmm funny things going on.........
at 10:47 on December 29th, 2008
For more on the Robert Rubin ponzi scheme, please click link below (youTube).
Robert Rubin ponzi scheme eclipses that of Madoff, yet the media is silent on the former and potential Obama treasury secretary.
at 00:30 on March 27th, 2009
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Thanks for the post! Lucky for those banks not included in Madoff's investment scam. Well, lesson learned for Bernard Madoff. Without regulation, it's a lot easy to do something illegal. While doing something illegal is out of the question for most people in most circumstances, these are not most circumstances. If you had the chance to get away with stealing not $50...not $50,000... not $5,000,000... but $50,000,000,000, wouldn't a lot of people take that chance? Some people obsess over hidden treasure. Dreams of finding some vast hidden treasure out on some Caribbean Island is usually a byproduct of watching too many pirate movies and not researching what actually went on with them. (Most pirate raids were for primarily two things, food and booze.) Anyway, a lot of people are looking for where Madoff stashed his loot, and they'e get some short term loans to try and find out just where it was he hid it. It is unlikely that he hid a treasure nchest full of cash and bond coupons, so anyone looking to get out the metal detector will just have to get used to disappointment -- as they won't likely find any of his hidden treasure.
at 15:17 on July 18th, 2009
BEWARE OF PONZI SCHEME!!!!
Ed Berkhof is NOT who he says he is!!! Edward Berkhof is nothing more than a wannabe-rock-star-turned-Ponzi-Scheme underling who along with fellow criminal Sydney Trip Camper feeds off of the innocent hard working people. These criminals use name dropping, stamped passports, and donations to St. Jude's to gain trust and power over these private companies with aspirations to go public. According to SEC files, Sydney Trip Camper was fired from Elandia Inc. by Allen Stanford. He then went on to his next victim and ruined them by tricking them into forming a holding company, opening secret bank accounts, and using all THEIR assets to get OTHER people to loan HIM money = PONZI SCHEME!!!! Beware of these smooth talking criminals like Sir Allen Stanford, Edward Berkhof, and Sydney Trip Camper III.